Italy’s actual property market attracted €5.2 billion in investments within the first half of 2025, a 50% improve over the identical interval final 12 months, in line with Dils Analysis. The hospitality sector was the standout performer, recording €1.5 billion in investments – its finest lead to 5 years and an 88% surge in comparison with H1 2024. Exercise was notably sturdy in luxurious belongings throughout Rome, Venice, and Lake Como, with 4 of the semester’s ten largest offers involving hospitality. Retail additionally noticed its strongest efficiency since 2019, whereas logistics and residential continued their upward development with notable will increase in volumes and transactions. Workplace investments remained secure, and different belongings akin to healthcare and pupil housing gained additional momentum.
In line with the Dils Analysis Workforce, funding volumes in Q2 2025 reached €2.5 billion, up 56% in comparison with the identical interval final 12 months. This confirms the constructive sentiment amongst actual property gamers for 2025. Wanting on the first half of the 12 months, the Italian market attracted €5.2 billion in investments, a big 50% improve over H1 2024.
As soon as once more, the efficiency was pushed by the Hospitality sector, which recorded its finest outcome previously 5 years because of investments exceeding €850 million. The sector recorded €1.5 billion in H1, marking an 88% improve in comparison with H1 2024. Exercise was notably sturdy in a few of Italy’s high vacationer locations – together with Rome, Venice, and Lake Como – with a transparent give attention to the posh phase. Hospitality continues to draw capital by means of high-value transactions, with 4 of the ten largest offers of the semester belonging to this asset class.
In keeping with the developments of earlier quarters, Retail recorded over €500 million in Q2 investments, bringing the H1 whole to €1 billion – the sector’s finest efficiency since 2019. The strongest quarterly contributions got here from offers within the purchasing heart phase and the rising curiosity of personal buyers in trophy mixed-use belongings with a excessive avenue retail element, situated in prime districts of Milan and Rome.
Noteworthy is the numerous deal involving Grandi Stazioni Retail S.p.A., the retail area concessionaire for Italy’s foremost railway stations, whose capital was acquired by two main worldwide buyers. Whereas the character of this transaction excludes it from the full funding quantity, it nonetheless indicators a renewed curiosity within the Italian retail sector.
In Q2 2025, funding volumes within the Logistics sector reached €141 million, bringing the H1 whole to €785 million. Regardless of a quarterly slowdown, this represents a 61% improve over H1 2024, confirming a constructive development. The Q2 decline is attributed to momentary elements, whereas structural market dynamics – together with a strong pipeline of upcoming offers – recommend a probable improve in H2 volumes. The prime internet yield stays secure at 5.30%, per the earlier quarter, although inside a broader context of gradual compression.
Logistics take-up reached roughly 560,000 sqm in Q2, up 13% from the earlier quarter. The H1 whole quantities to round 1,050,000 sqm, down 11% in comparison with H1 2024. The occupier market is stabilizing, although nonetheless reflecting the sector’s growth lately. Demand stays sturdy for high-quality areas, with newly constructed belongings accounting for over 80% of Q2 take-up. The nationwide prime lease remained unchanged at €70/sqm/12 months within the Milan and Rome markets, whereas the Verona market noticed a rise to €60/sqm/12 months.
The Workplace sector recorded €300 million in Q2 transactions, bringing the H1 funding whole to €790 million. The info reveals general stability year-on-year. Milan remained the main nationwide market, accounting for 84% of investments, adopted by Rome with 14%.
In Milan, workplace take-up for H1 2025 reached roughly 205,000 sqm – together with 100,000 sqm in Q2 – marking a 15% improve in comparison with H1 2024. This was the most effective semester when it comes to variety of transactions (over 180) for the reason that begin of the information sequence. The occupier market was pushed primarily by demand for medium-sized areas, with 51% of take-up involving items between 1,000 and 5,000 sqm – the very best share in 5 years. Excessive-quality (Grade A/A+) areas proceed to dominate, accounting for over 74% of whole take-up. The prime lease stays secure at €775/sqm/12 months, with an upward stress anticipated within the coming quarters.
In Rome, workplace take-up reached 19,000 sqm in Q2 and roughly 53,000 sqm for H1, down 46% quarter-on-quarter and 23% year-on-year. Among the many roughly 70 transactions in H1, solely 19% concerned Grade A/A+ properties, highlighting the continuing scarcity of high-quality inventory. This shortage is not restricted to the CBD and Historic Centre however can also be beginning to have an effect on occupier decisions within the EUR Core space, the place prime rents have elevated to €400/sqm/12 months. In opposition to this backdrop, additional rental development is anticipated, pushed by restricted provide and a modest improvement pipeline.
The Residing sector attracted roughly €320 million in investments throughout H1, with over €130 million recorded in Q2 alone. These figures symbolize vital will increase in comparison with the identical durations in 2024: +54% year-on-year and +98% quarter-on-quarter. Milan remained the primary funding vacation spot, accounting for round 60% of Q2 volumes, adopted by Rome with 20%. Notably, Pupil Housing accounted for roughly one-third of whole H1 investments, reinforcing its place among the many most engaging asset lessons for buyers, who’re more and more centered on each improvement tasks and core merchandise.
In Q1 2025, the Italian residential gross sales market continued its constructive momentum from 2024, recording 172,048 transactions – up 11.2% year-on-year.
Milan noticed 5,505 transactions (+7.1% YoY), with a robust choice for smaller items (over 65% underneath 85 sqm). New builds accounted for 9.5% of gross sales – returning to secure ranges after the earlier quarter’s spike on account of a number of undertaking completions – and remained 3.7 proportion factors above the nationwide common.
Rome additionally maintained development, with 8,528 transactions (+10.7% YoY), persevering with a constructive development noticed for over a 12 months. Practically half of demand (49.5%) centered on mid-to-large items (over 85 sqm), whereas new builds made up 8.1% of transactions, returning to pre-This autumn 2024 ranges.
Favorable financing situations proceed to assist the market: in Q1 2025, common mortgage charges fell to three.22% (-76 bps YoY), boosting mortgage uptake. Mortgage-backed purchases accounted for 53.5% of gross sales in Milan and 58.7% in Rome – each up from the earlier 12 months. The rental market remained secure nationally in Q1, although with differing developments in main city areas. Milan and Rome noticed a continued decline in long-term leases in favor of short-term contracts. In Rome, commonplace leases (4+4) dropped by 12%, whereas in Milan the lower was extra reasonable (-1.3%) and confirmed enchancment over earlier quarters. Conversely, momentary contracts rose by 2.8% in Rome and 6.0% in Milan.
With whole H1 volumes of roughly €790 million – €580 million of which have been recorded in Q2 alone – the Different sector as soon as once more proved to be among the many most engaging for buyers. This outcome was pushed notably by the return of main transactions within the Healthcare phase, which noticed €266 million in Q2 investments thanks largely to 2 portfolios included among the many high ten transactions of the quarter. Vital offers have been additionally closed within the Combined-use phase, together with a significant transaction that includes a robust Training element.
As forecasted, the primary half of 2025 closed with stable funding development. The Italian market stays enticing for each established asset lessons – notably Hospitality – and rising segments akin to Healthcare, Training, and Information Facilities, that are gaining momentum in response to society evolution and technological innovation. In a worldwide panorama marked by shifting balances, the primary problem for Italian actual property will probably be to align with long-term structural developments. The purpose is to proceed creating new alternatives that meet the expectations of key gamers, thereby reinforcing the nation’s positioning throughout the European context.
