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.
The trend of the commercial real estate in Milan
The closure of the year has confirmed the best expectations for Milan leasing market: with an Office take-up of around 354,000 sqm (increasing by 20% on 2016), 2017 was the best year ever for the city. The year 2017 has been also characterized by an extraordinary dynamism in term of number of transactions: 250 deals closed with respect to the long-term average of around 170. Very good performance for Milan in 2017 also regarding the investment market: around 3.6 billion of euro invested with an increase of 17% on 2016 thanks to a last quarter that has contributed for around 1.6 billion of euro. To be underlined the stunning increase for the High Street sector reaching in Milan almost one billion of euro invested (on the Italian total of 1.4 billion of euro).
The trend of the commercial real estate in Rome
The year 2017 has closed for Rome with a record level of absorbed spaces, confirming the general improvement of the demand recorded in the city already in 2016. The total take-up in 2017 has been of 217,800 sqm (+60% on 2016), including the relevant transaction of around 43,000 sqm closed in Q4 by an important Italian corporate, deal that testifies the renewed confidence in the roman market. Regarding the capital market, investment volumes recorded in Rome in 2017 have been equal to around 1.2 billion of euro, decreasing by 22% on 2016 but slightly increasing on the ten years average (equal to 1.1 billion of euro). More in details in Q4 2017 investments for around 174 million of euro have targeted the city.