The total volume of transactions in the Italian commercial and residential real estate market amounted to about 12.4 billion euros. The year ended at the level of historical averages, but this result was achieved by a limited number of large operations. The final quarter was particularly active, which signals renewed interest after a period of caution. The trend reflects a shift in strategies: investors prefer large, liquid assets with transparent cash flows.
The retail real estate sector has consolidated its leadership, attracting about 3.45 billion euros. The capital was concentrated in the premium segments: shopping malls (36%), outlets (22%) and flagship streets (21%). Interest in secondary assets remained minimal.
Logisticshas retained its status as a key asset class due to steady demand. Capitalization rates continued to decline gradually, reflecting increased pricing discipline and growing demands on ESG standards.
The hotel sector has attracted about 2.1 billion euros, taking advantage of the stable tourist flow and the interest of international investors. More than 60% of the volume was accounted for by 4* and 5* hotels, which combine premium location and relaunch strategies through renovation.
The office segment has shown signs of stabilization. Investments were concentrated in key locations in Milan and Rome, and interest in assets with redevelopment potential increased. The demand for outdated facilities without the possibility of conversion remained low.
Residential real estate, although lagging behind in terms of volume, is considered as a strategic direction for the future. The growth is driven by structural trends: student housing, Build-to-Sell projects, and integrated urban regeneration.
Geographically, the real estate market as a whole remains sharply polarized: Northern Italy, especially Lombardy and Milan, dominate in terms of the number of transactions. Rome retains its position in the office and hotel segments, while the South and the islands are active in retail and tourism.
International capital provided about 60% of the total investment volume, with significant participation of funds from the USA and Europe.
The results of 2025 in the housing market of Italy and other countries
A source: Idealista
