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, with a focus on the cities of Milan, Rome, and Genoa.

In the first half of 2025, the Italian real estate market posted particularly strong results, with corporate investments totaling €5.2 billion—a 45% increase compared to the same period in 2024 and above the ten-year average. Hospitality & Healthcare remained the leading asset class with €1.65 billion (32% of the total), followed by Retail and Offices. Hospitality accounts for the largest share, with a strong focus on luxury and repurposing, while the healthcare sector reached its highest level in the last five years. At the same time, interest is growing in senior living, student housing, and innovative projects aimed at addressing the country’s structural gaps, particularly in light of PNRR funding.

The macroeconomic and financial landscape is helping to shape a more favorable environment. The ECB’s rate cuts and the Fed’s announcement support the prospect of greater liquidity and a new phase of yield compression. Retail is showing signs of recovery, with renewed interest in shopping centers and retail parks after years of illiquidity, while logistics remains central, driven by e-commerce. Data centers are emerging as a new strategic asset class, particularly in Northern Italy. The outlook for the second half of 2025 therefore remains positive, with the hospitality sector expanding, living spaces becoming increasingly diversified, and investors focused on capitalizing on opportunities arising from global macro-trends and demographic shifts.

Italian cities exhibit different yet complementary dynamics. Milan remains at the center of urban regeneration and investment, particularly in anticipation of the 2026 Olympics, despite facing construction delays and regulatory uncertainties. Rome is experiencing an acceleration thanks to the Jubilee and over €1.15 billion in projects funded through the PNRR, with a strategic approach focused on sustainability and inclusion. Genoa, also supported by the prospects of high-speed rail, is consolidating its urban and residential revitalization, with increasingly selective and quality-driven demand. In the residential sector, demand remains high, especially for energy-efficient and move-in-ready properties, while in the commercial sector, conversion projects toward hospitality and residential uses are gaining momentum.

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