News / From the associates

PwC’s 2024 Retail Market Report analyzes the evolution of the retail real estate market in Italy, the leading asset class for investment in 2024. After years of investment below historical averages, negatively impacted by the pandemic (-45% in 2023 compared to 2021), the sector saw a significant recovery in 2024, with investment volumes reaching approximately €2.2 billion, an increase of over 200% compared to the previous year.

The shopping center segment, despite having experienced a decline in recent years (-65% in investments from 2018 to 2023), is showing signs of stabilization, with prime yields rising by 210 basis points over the same period. Investors are shifting toward a new shopping center concept, with greater emphasis on sustainability, the consumer experience, and integration with the urban environment. These factors are gradually revitalizing the segment’s appeal, despite the general slowdown observed in the post-pandemic years.

In the high street sector, however, a significant strategic shift is underway. Traditionally viewed as a segment associated with luxury brands’ marketing and reputation strategies—centered on leasing flagship stores on the most prestigious streets—this market is evolving toward a model more focused on property ownership. Transactions such as Kering’s deal on Via Montenapoleone in Milan—the largest single-asset deal ever recorded in Italy—reflect the new strategy of major luxury groups, which are directly acquiring the most iconic assets on global luxury streets to consolidate the value of their holdings and strengthen brand recognition.

In conclusion, despite the difficulties of recent years, the retail market is returning to the center of investors’ attention, driven by high-profile transactions and a renewed focus on quality and innovation in the sector’s two main segments.