A new quarterly Report of the Research Department of BNP Paribas Real Estate Italy, headed by Cristiana Zanzottera, is online. It illustrates the trend of the Italian Real Estate market. These research reports provide an in-depth view on real estate topics and trends both from the Capital Markets and from the Leasing side: investment volumes, distribution of interest among different asset classes, investors’ typologies, yield trends, demand and supply characteristics of Office spaces in Milan and Rome. The Research Department publications of BNP Paribas Real Estate Italy are based on a deep knowledge of the local real estate market and represent an insight on Italy and the world provided by the global economic research network of the BNP Paribas Group.
BNP Paribas Real Estate Research – Investments in Italy
In general, despite the slowdown compared to 2017, the Italian market still has a potential of attracting international investments, confirming prevalence of foreign investors.
In a nutshell, it is necessary to create opportunities in the future in order to meet the demand of all types of investors interested in a market that is becoming increasingly international.
Assets purchased in 2018
Unlike Q1 2018 (when the traditional hierarchies of the different asset classes were not observed), Q2 2018 showed the Office segment becoming again the largest investment volume originator in Italy (51% of the total in the quarter with approximately euro 880 million), confirming a structural characteristic of the Italian market. However, despite this record in Q2, the overall performance of the Office segment in the first six months of 2018 was, as above indicated, negative (-43%) versus H1 2017, reaching total investments slightly above euro one billion.
The reduction in the Office volumes was reported in Rome, while results in Milan were in line with the first half of 2017, with approximately euro 800 million. As anticipated, the reduction in investments is a result of the limited availability of office assets on sale.
Foreign investors’ interest remains high
The capital market in H1 2018 was mainly characterized by foreign investors who concentrated investments in Italy for a total of approximately euro 1.9 billion (65% of the total of the semester).
Read the full report