Institutional market to recover in the first half of 2025

The Italian institutional real estate market will close the first half of 2025 with approximately EUR 5.3 billion in investments, up 51% compared to the same period in 2024, and 31% above the average of the last five years. This is what emerges from data compiled by the research office of Bnp Paribas Real Estate, which notes a recovery trend in a European context of perceived stability.

In the second quarter, volumes reached EUR 2.72 billion, an increase of 4% compared to the previous quarter and 80% year-on-year.

Leading the market trend in the first half of the year were the Office (26%), Hospitality (24%) and Retail (23%) segments. In particular, the Hospitality segment showed significant growth: +171% compared to the first half of 2024 and +89% compared to the average of the last five years, supported by the good performance of Italian tourism. Retail is also showing signs of recovery with volumes up 142% year-on-year and 139% compared to the five-year average, after years of contraction.

The office sector retains a central role, with a volume increase of 33% above the average of the last five years, concentrated in core operations, while not excluding value-add activities.

Logistics grew 30% year-on-year in the first half of 2024, although second-quarter volumes remained below the five-year average due to a comparison with particularly dynamic quarters. The expansion of the Alternatives segment, which includes assets related to living, data centres and healthcare, also continued and accounted for 11% of total institutional investment volumes.