News / From the associates

According to Savills’ analysis, the retail sector in Italy continues to show signs of strength, supported by the recovery in tourism, the resilience of high streets, and the stability of shopping centers. In the first quarter of 2025, the sector accounted for 21% of the total volume of real estate investments, with approximately €570 million in transactions: a figure five times higher than in the same period of 2024 and three times the average of the past five years. In 2024, total transaction volumes in the retail segment exceeded €2.3 billion, with high streets accounting for nearly half of all investments. Investor interest is fueled by solid fundamentals, new openings, innovative formats, and greater alignment between sellers’ and buyers’ expectations. Yields and prime rents are expected to stabilize in the second half of 2025.

Tourism remains one of the main drivers of demand, supporting rents in major cities—Milan, Rome, Florence, and Venice—as well as in seasonal seaside, lakeside, and mountain destinations. Milan stands out as the most sought-after market: Via Montenapoleone is now the most expensive street in Europe, with rents of €15,000/sqm/year, while in Florence, on Via de’ Tornabuoni, rents reach €7,000/sqm/year. Shopping centers are also showing signs of recovery: foot traffic is stable, and sales are growing, with six new openings in the first quarter of 2025. The factory outlet segment led the quarter’s transaction volume, while supermarkets, hypermarkets, and DIY stores remain strategic assets. Against this backdrop, the grocery sector recorded a record year in 2024, with €560 million in investments spread across eight transactions (three portfolios and five individual assets), totaling 69 supermarkets and hypermarkets. The sector’s defensive nature continues to attract investors, thanks to solid performance even during periods of economic uncertainty. Food sales exceeded 2019 levels, showing greater resilience than sectors such as fashion, which remain below pre-pandemic levels. In 2024, grocery accounted for 24% of Italian retail volumes, compared to the European average of 15%. Demand remains strong, driven by interest in out-of-town retail and food and DIY-focused assets, with a growing emphasis on proximity, sustainability, and local presence.