Despite this, we are quite confident that the fundamentals for the occupiers sector have improved and are expected to strengthen in 2022. The Industrial & Logistics division, that also specializes in the Data Center market, has taken part in the event, Real estate investments through Data Center: the impact of digital transformation on real estate asset classes organized by AGIDI, or the Italian Association of Real Estate Legal Experts. The growing concern over these risks has intensified the interest in environmental, social and governance (ESG) factors within the financial sector. Will prime yields continue to be sustainable? Italian property prices have on average fallen by 0.4% every year. Italy Zip Codes. The market research study on the commercial real estate market in Italy focuses on the market activity within the key subsectors, such as offices, retail, industrial and multifamily. The same restrictions were extended to the entire country the day after, confining 60 million people to their homes. The sacrifices we have been making for more than a month are producing the desired results and we cannot stop right now". However, the worsening scenario in November and December cooled this optimism ending the year with an annual turnover in decline of -14.7%. The Venetian Hotel association stated that rooms are currently 70-75% booked considering that usually the best months for the city are September and October. Footfall is still around 26% less than 2019 but this could improve once entertainment and F&B activities return to operate fully; results for the second half are encouraging. By far the most relevant property news is the launch of the sale of a Milan trophy office currently owned by Blackstone: the former Italian Post Headquarters, Piazza Cordusio, an example of an iconic asset repositioning. In addition, the Italian Pension Fund of the Doctor (ENPAM) through its asset manager DeA Capital SGR completed 86 million core acquisition of Mellerio Velasca buildings in CBD Milan from Kryalos SGR and a second core transaction in Rome will be closed in the coming days. The Prime Minister survived a confidence vote in the countrys Senate but fell short of an outright majority. This is creating tensions between EU governments and the COVID-19 vaccine producers with legal actions threatened by Italy. All assets are core / core plus offices located in the city centre or in a semi peripherical location of Milan underlining how the citys office market is still the centre of the interest of the foreign investor. The success of the vaccine campaign (29 million Italians received the first dose and 14 million both doses) together with the reduced number of cases (in the last 2 weeks the weekly average number of cases moved from 2,268 to 1,726) is giving more confidence to tourists, who have started booking their vacation. Federalberghi is expecting a 295 million drop in tourists (-70% compared to 2018) with a turnover decrease for the tourist sector of about 16.3 billion (-69%). Rising inflation is starting to become an issue for some occupiers, mainly for those less financially sound and more exposed to inflation linked costs. The new instrument to support the Italian economy called Decreto Rilancio is now law. As a matter of fact, the latter still share a positive outlook on Italy as highlighted in the survey we carried out in October on a sample of national and international hoteliers active in the Italian market. In addition, most part of the investors are seeing a yield spread in logistic and residential sectors compared to the rest of Europe and the office sector is still being driven by quality, which is currently scarce. The resurgence of coronavirus cases in October led to a slowdown in the economic activity at the end of 2020 leading to a decrease in GDP in the fourth quarter, partially offsetting the sharp increase experienced in the third quarter. The impact of the pandemic increased each quarter with the gap between 2020 and 2019 moving from 20% in Q1 to 41% in Q4 (where just 2.8 billion have been transacted against something between 3.2 billion and 4.9 billion between 2017 and 2019). Discussions among the coalition are ongoing in order to avoid the collapse of Government, and a reshuffle is expected in some of the ministries with the so called Conte Ter Government. Milan, Italy, Head of Capital Markets and Rome Office Within logistics, data center is proving attractive for a number of international investors although the Italian market is still at a very early stage. At all times it is important to recognise that people are suffering, and it is positive to see the amazing response from the international community and individuals alike. Our life has changed as well as our purchasing behavior, with a common feature which is the increased digitisation of the population. The Municipality of Milan is the biggest employer of the city with over 15,000 employees: Mayor Salas back to the office plan should keep 3,500 people among public workers, teachers, local police etc. With a homeownership rate of over 72 percent,. The Bologna-based research company concluded that the Italian property market's situation is undoubtedly very serious, with a drop in turnover of 9 billion to 22 billion compared to . While there are no easy answers at this uncertain time, we remain focused on keeping our clients informed on the continually evolving commercial real estate landscape in Italy. Hospitality and retail registered 1.8 billion with an important decrease compared 2019 numbers due to the strongest impact of the uncertainty on the consumers and on the tourists. These initiatives have financed commercial real estate construction and management activity to a large extent, over the last 50 years or more. Summer is knocking at the door. The notion of inflation being our major concern continues, as does the rising cost of energy which will be particularly predominant in Italy, since 100% of our gas is imported, with 40% coming from Russia. Copyright document.write(new Date().getFullYear()) CBRE. As Miles Johnson said in the FT weekend edition Romes rancorous politics will be a minefield for the former ECB president. On this subject new cases in Italy are rising but at a much slower pace compared to the other countries; the Financial Times Weekend issue underlined how the high level vigilance keeps COVID-19 under control in Italy while few want to tempt fate ahead of winter - FT says - there is confidence that Italys efforts can continue to keep the virus under control. An expected drop in rental levels will probably impact on yields, although no transactions have been completed in Q2. Climate risk is a financial risk and must be factored when pricing the assets. The second half of the year will be different from what we have been used to, but it doesnt mean it will be worse. The Christmas holidays are over, and Italy spent most of this period in lockdown with all the regions in Red Zones. Planning to buy or sell a home in Italy? Our unmatched research and thought leadership platform delivers actionable insights to help our clients make informed business decisions. CBRE Italy Investor Intentions Survey 2022 DOWNLOAD THE REPORT Find out about the intentions of real estate investors for this year by reading our findings in the CBRE Italy Investor Intentions Survey 2022. Some have already started to put on hold their decision-making processes and some others are considering withdrawing or asking for discounts on advanced negotiations. Investors remained active, reacting differently to the changed scenario. Cushman & Wakefield MarketBeat reports analyse quarterly Italy commercial property activity across office, retail and industrial real estate sectors including supply, demand and pricing trends at the market and submarket levels. [2] The survey is based on a sample of 1506 interviewees, representing the Italian population aged 18 to 84. According to the latest research of the Italian Revenue Agency the Italian real estate market reported a significant volume growth in sales, from+ 0,3% of the Centre capitals to + 12,2% of the South ones. Despite that, the first half of the year posted record investment volume for real estate: 6.1 billion, more than double the same period last year and +17% compared to 2019. Occupiers have experienced the last tails of the pandemic with the Omicron variant which has slowed consumer spending and the full come back to the office. A regular update on the commercial real estate market in Hungary. There is still strong long-term confidence and desire by hoteliers to continue their expansion into the Italian market. Tourists rarely want to buy a house and few Italians can afford to buy. On the occupier market, take-up in Milan stood at 100,000 sq m, quite robust while Rome slowed down at 25,000 sq m. In the first week of April, further deals have been stopped with investors becoming more cautious, mainly for value-add deals. If 70% of the investors are ready for a yield increase by year end, the scale varies among the different asset classes with office, residential and logistics more resilient, with prime yields expected to increase up to 25 bps. Although lockdown is not an option anymore and all activities are now open (subject to green pass), it is still important to respect measures aimed at containing the spread of the virus (wearing masks, avoiding big gatherings, personal distancing, hand washing, etc.). The 18 October DPCM (Decree of the Prime Minister) closed high attendance areas from 21.00 to avoid large gatherings; restaurants and bars must close at midnight and from 18.00 people not seated at a table (max 6 people per table) cannot be served, while supermarkets also cannot sell alcohol after this time. Summer 2021 has been the hottest in the last two centuries in Italy, with a peak of 48.8 degrees in Sicily on 13 August, with a direct impact on the expansion of fires. However, we have a responsibility to offer our continued interpretation and experience. As the Government begins to ease lockdown restrictions, how is the social life of the high street starting? Allianz bought a core office building in Rome for over 200 million - its second deal in two months - following the 140 million Sale and Lease Back in Via Armorari, Milan. Call The RealFX Group, your local real estate team, at (512) 956-7390. It is aimed at better understanding of the perceived and future prospects of shopping centres on the Italian market. The majestic serenity REAL ESTATE BUYING GUIDE As a matter of fact, the latter still share a positive outlook on Italy as highlighted in the survey we carried out in October on a sample of national and international hoteliers active in the Italian market. by * Report introduction: Real Estate Market. In this context, with people less keen to follow the anti-Covid rules, since 6 August, Italy registered more than 400 new cases per day (except for 2 days) with a peak of 629 on 15 August. Stop searching hundreds of websites, post, notice boards, etc. The current Italian post-Covid situation doesnt scare long term core investors who have been particularly active over the last 3 months. In Florence, after 2 months of closure, the Uffizi Gallery registered 21,000 visits in the first 6 days of opening in May. On the other side the number of deaths was 746,000, the highest number after the second world war, with an increase of 15.6% compared to the average 2015 - 2019. Only market prices are considered, self-build dwellings are therefore excluded. The beginning of 2021 marked the same trend recorded at the end of 2020 for real estate sector in Italy, highlighting a 33% drop in investments compared to the same period of the previous year. To leave the effect of the pandemic behind, to reach these objectives we must be united as country Today unity is not an option, it is a duty. Nonetheless there are still many positives: huge capital available to be deployed to real estate, banks that are still there to finance investment opportunities, even though at a higher cost (+20-50 bps margin compared to six months ago) and the competitive positioning of Italy in the European real estate market. Data transparency will be fundamental for the success of the investment. In April, after increases for 9 months, inflation growth slowed down standing at + 0.2%, bringing the yearly change at +6.2%, down from +6.5% in March. Foreigners have also started to populate Italian summer destinations. We are committed to providing our clients with up to the minute intelligence and commentary as to what is happening in the real estate markets. It was different compared to pre-pandemic events, with capacity well below standard. Short-term rental prices are soaring and new properties are also recording increasing prices. Download. The overall population fell by 384,000 units (-0.6%) compared to a year earlier: on the whole it is like losing a medium city like Florence. Figure 1: Italy real estate market value: $ billion, 2016-21 Show more Pricing Single User: $ 350 Site: $ 525 Enterprise: $ 700 Quick Buy Add to basket Enquire before buying Discounts available for multiple purchases. See Overview. At the end of last year, the summer reservations by Italian tourists were 44.7%; today they total 54.7%. Italy also recently shut down nightclubs and required masks to be worn after 6 pm in outdoor public areas where crowds may form. Mismatch demand vs supply: there are approx. A positive impact is expected on employment which will grow by 3.2% between 2024 and 2026. It is an extremely difficult moment he said, Defeating the pandemic, completing the vaccination campaign, offering answers to the daily problems of people, relaunching the country, are the challenges ahead of us. The priority of the new government is to fight the coronavirus pandemic with all means and with the vaccination to be carried out in every available public and private space involving the army, protezione civile and volunteer service. The use of the Recovery Fund money will be the second challenge Mr Draghi will have to face. Shopping centre performances were not disappointing as well: October data pointed to a footfall contraction of almost 12% compared to 2019 with a constant recovery on a monthly basis, while sales almost reached pre-pandemic level, standing at -3.7 % on 2019 (September). Fixing Italys economy will be Super Marios third challenge, probably the most complicated one considering that political and technocrat governments have not able to get decent results in the last 30 years. It will host over 50,000 people every day including residents, city users and visitors. The number of births fell by 16,000 reaching 404,000 units (-3.8% compared to the previous year) reaching the lowest number since the countrys unification in 1871. The confidence about commercial property during the 4 days of the MIPIM eventhas been reflected in the preliminary Q1 investment volume, standing at circa 2.7 billion, more than double compared to the long term quarterly average. In his last speech to the lower house of Parliament Mario Draghi presented the 248 billion European Union funded Recovery Plan stating that The National Plan of Recovery and Resilience (PNRR) makes investments possible that would have been impossible, unthinkable, until days ago () The whole plan is an investment for the future and for the new generations". Mettiamo a tua disposizione tutta la nostra conoscenza del commercial real estate. Find out about the Italian commercial real estate trends for 2022. Even on the high street market, tenants and landlords will necessarily become partners rather than just counterparties. One first-time buyer, 30-year-old Emanuele Reale, tells The Local Italy how he's just bought his first home in a small town near Siena, Tuscany, for 123,000 Euros. Hospitality, on the other side, despite performing poorly compared to 2019, is still attractive for opportunistic investors and hotel operators. In the other regions the same measure is under discussion. The results of a survey from Demoskopika* (on behalf of the Municipality of Siena and in collaboration with the Universit di Sannio) estimates that 12.3 million tourists from abroad will reach the Bel Paese for vacations for 25 million nights (+15.3% compared to 2020). The Italian market is in some ways more accessible than those in other European countries, but it can be hard to find a house worth buying. This time by analysing the data from each region, which are now classified in three different zones based on the potential risk (red, orange and yellow). The fast-recovering economy, high level of Covid vaccination rate (among the highest in Europe) combined with Mario Draghis reliability earned us this unprecedented recognition. The Italian hospitality marketis still fragmented with a lot of privately-owned hotels where international hotel chains represent a small part of the market. To date circa 5.3 million people have been vaccinated (of which 1.6 million with both doses) representing circa 8.53 doses every 100 people (UK 32.99, Turkey 11.57, Germany 8.45). Italy's housing market remains steady, despite the pandemic-induced recession. A regular update on the commercial real estate market in Italy. Overall, 2020 ended with almost 9 bn invested in the CRE in Italy, 30% below last years volume but also one of the best years ever over the past 20 years. Investment volumes stood at circa 6.1 Bn, more than double same period last year and +17% compared to 2019. Florence, Via Tornabuoni - the top luxury fashion prime high street in Tuscany - is quiet however, the Uffizi Museum has just reopened to the public with access to 450 visitors together (50% less compared to pre Covid). A small share of office tenants have asked for rent reviews or suspensions - mainly flexible workplace operators - but this share could increase as corporates assess their business exposure to the consequences of the outbreak. The previous owner had paid 180,000 Euros for the house in 2011 and put it on the market last year for 155,000, but right now buyers like Emanuele are able to bargain hard. Athens ranks 23rd in Europe out of a total of 30 European megacities in terms of real estate market prospects for 2023, while the top 3 European megacities are London, Paris and Berlin. The normal frenzy of the street is missing, just like all the tourists as well as the 3 million commuters that travel in and out of the city every day. In addition, another large urban park for Milan will be created, spread over 111 acres, set to be one of the largest in the Lombardy Region. 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