News / From the associates

The Kroll report provides a detailed overview of the Italian real estate market, highlighting trends, emerging asset classes, and investment prospects. In the first half of 2026, corporate investments in the Italian real estate market exceeded 7 billion euros, up approximately 35% compared to the same period in 2025 and marking a new all-time high in investment volume. The recovery was driven by lower borrowing costs and a resurgence in demand, following the slowdown of previous years linked to tighter credit conditions and rising interest rates. Capital came in roughly equal measure from domestic investors (49%) and international investors (51%), primarily from the United States, France, and the United Kingdom. Geographically, Milan has strengthened its central role, accounting for 38% of total investments, while Rome stands at 9%, against a decline in the share of regional markets.

Looking at individual asset classes, retail remains the leading sector, with €2.3 billion, accounting for 33% of the total, consolidating its recovery thanks to the return of institutional investors and interest in retail parks, well-located shopping centers, and high streets in major cities—all further supported by tourist traffic. In Milan, yields on prime retail streets remain between 3.5% and 4.25%. The hospitality sector, the second-largest asset class by investment volume at approximately 1.5 billion euros—accounting for 21% of the total—recorded a 10% year-over-year decline but continues to benefit from solid tourism demand: in the first quarter of 2026, hotel occupancy remained essentially stable (-0.1%), while the average nightly rate rose by 9%, from 131.23 to 143.09 euros. Logistics, with €1.2 billion invested—equivalent to 17% of the total—recorded 50% growth, with capital concentrated along major infrastructure corridors and growing interest in secondary markets. The office sector attracted approximately 850 million euros, accounting for 12% of the market, with 80% of investments concentrated between Milan and Rome and prime yields ranging from 4.25% to 5.25% in Milan and from 4.75% to 6.25% in Rome. Residential real estate accounted for 10% of the volume, reaching 650 million euros, up 8% year-over-year, driven in particular by interest in student housing, supported by the imbalance between supply and demand in major university cities.

For the second half of the year and in the medium term, the outlook remains moderately favorable, though it is influenced by developments in the geopolitical landscape, interest rate trends, and macroeconomic uncertainty. Investors are becoming increasingly selective, favoring high-quality, sustainable, and efficient assets, as well as sectors supported by structural trends. In the residential sector, the redevelopment of existing properties and flexible housing models such as build-to-rent, student housing, and senior living are gaining prominence; in the office sector, the “flight to quality” continues, with a preference for modern, well-located, certified properties equipped with amenities, while obsolete assets require revitalization efforts. In the hospitality sector, interest is growing in high-end properties, redevelopment projects, and innovative formats, such as branded residences and serviced apartments. Among alternative assets, data centers, energy infrastructure, land designated for renewable energy, and self-storage facilities are benefiting from the growth of artificial intelligence, cloud computing, and the energy transition, as well as from the still-limited supply of such properties. Logistics also continues to attract capital thanks to robust demand and a scarcity of high-quality properties. In this context, the ability to integrate sustainability, innovation, and actual user demand will be key to identifying the most solid opportunities, while maintaining a focus on asset quality and market risks.