In the first nine months of the year, 6.6 billion investments

The retail sector recorded investments of more than EUR 1.65 billion, with a significant share (about 65%) attributable to the acquisition of a prestigious property in Milan's Quadrilatero della Moda. The remaining part of the investments shows an investor preference for out-of-town, particularly in the shopping centre segment. Net prime yields remain stable at 4.25% for High Street and 6.5% for shopping centres. However, market evidence shows double-digit returns for second-tier and third-tier shopping centres.

In the first nine months of 2024, investors' attention focused heavily on the hotels sector: transactions, considering current use, reached a total volume of over EUR 1.1 billion. This value rises to 1.4 billion if we also consider about 300 million transactions that involved assets to be converted from other uses to the hotel sector. In particular, we highlight a transaction concerning an asset for office use in the city of Rome and two significant transactions of living & special purpose assets, which will be converted into luxury hotels.

"The high number of transactions recorded in various locations confirms the strong attractiveness of both the main urban tourist destinations and Italian resorts for investors," commented Claudia Bisignani, head of hotels & hospitality at Jll Italia. "The interest in this sector is also witnessed by several conversions from other uses to hotels, driven by the still sustained performance recorded during the year and the expansion strategy of the main national and international hotel chains intent on strengthening their presence in the Italian market.

As far as the Industrial & Logistics sector is concerned, the first nine months of 2024 closed with approximately EUR 1.2 billion in investments, up slightly year-on-year, of which approximately EUR 650 million in Q3 2024. Q3 volumes were characterised by two significant transactions of logistics portfolios by institutional investors with international capital, involving the core markets of Milan, Rome and Piacenza, as well as a single asset of over EUR 100 million. Core + and Value add capital remain generally dominant to date, maintaining a strong conviction in occupier-side fundamentals..

The sector remains one of the main investment targets at the moment, driven by significant repricing over the past 24 months, which has brought net prime yields to 5.5%, and resilient demand on the occupier side.

The living & healthcare market recorded investments of around €300 million, considering current use. Although volumes are declining, the interest in living is confirmed by the trend towards conversion from other uses to residential, with five transactions, valued at approximately EUR 100 million, of tertiary properties that will be converted into living assets. On the healthcare side, investments in the quarter mainly related to the RSA segment, which is expected to gain momentum in terms of volume in the fourth quarter. Returns prime stood at 5% for multifamily and 6% for healthcare

"The results of the first nine months of 2024 show a clear recovery of the real estate market, with investment volumes that have already surpassed those of the whole of 2023," commented Alberico Radice Fossati, head of capital markets at Jll Italia. "Despite the influence of a single transaction of considerable magnitude, at an overall level we can observe a renewed interest in the office and retail sectors. Logistics confirms its resilience, remaining at the centre of investors' attention and registering positive year-on-year growth. As the year draws to a close, we expect further encouraging results, driven by growing interest in the healthcare sector.