News / From the associates

According to PwC’s analysis, the office market in Italy remains resilient but is undergoing a profound transformation. In the first half of 2025, investments reached €800 million, a figure that is essentially stable compared to the same period in 2024 but still far from pre-pandemic peaks (over €2 billion in the first half of 2019). Milan remains the sector’s epicenter, accounting for 80% of total volume, driven by high-profile transactions such as Cordusio 2.0 (€300 million) and Piazza San Babila 1 (€51.5 million). In Rome, which accounts for 12% of the volume, conversion and repositioning projects prevail, such as the transformation of the former MPS headquarters on Via del Corso.

Although volumes are in line with last year’s figures, the long-term trend reveals a gradual decline in interest in the office sector, with a structural drop in demand for assets located in peripheral areas or of lower quality. Investors’ growing selectivity favors prime properties that are well-located and meet high sustainability standards. It is no coincidence that over 77% of Italy’s non-residential real estate still falls into energy classes D–G, indicating significant potential for retrofit projects in line with European targets.

The very concept of the office is changing. The widespread adoption of hybrid work has accelerated the transformation of spaces, which are increasingly designed according to the “4C” principles (Concentration, Collaboration, Communication, and Contemplation) and characterized by modularity, inclusivity, and sustainability. Investors are thus turning to core and core-plus assets, which offer stable cash flows, while peripheral properties require more complex value-enhancement strategies. Future demand will become increasingly selective, driven by ESG criteria and a reduction in floor space: over the past 15 years, the average space per employee has decreased by approximately 20%, reflecting more flexible and digitized work models.

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