Investment volumes in Italy up 128% to €2.8 billion in Q1: CBRE
2025 has started with a bang in Italy: according to new CBRE data, investment volumes have increased by 128% in Q1 2025 reaching €2.8 billion, one of the best quarterly figures ever.
“All asset classes have recorded an increase in investment volumes as investor confidence has returned after years of extremely selective buying,” said Silvia Gandellini, head of capital markets Italy, CBRE. “Occupier markets have performed strongly, strengthening investor appetite. However, geopolitical uncertainty remains the main issue in the market in 2025.”
The logistics and industrial sector recorded the best performance with €634 million, a 125% increase in volumes compared to Q1 2024, driven by platform deals and value-add transactions. Investors are attracted by the sector’s competitive returns following the repricing of the last few years, CBRE said.
The hotels sector has also delivered a strong performance, attracting €614 million in investments, a 149% increase on Q1 last year. Over the past three months, the market was characterised by intense activity in the value-add segment for upscale and luxury properties. Private capital and family offices have contributed significantly to these volumes, developing new product through repositioning or conversion of existing properties.
The retail market continues its expansionary phase and recorded the biggest YOY increase, up 815% to €532 million. High street retail attracted strong interest from family offices and some large transactions were concluded in the quarter, but out of town retail also attracted investors.
Investment volumes in the office sector were €506 million, up 2% on Q1 2024. Investor appetite for the more central markets of Milan and Rome remains strong, but product availability is limited. Value-add transactions are also still attractive because of occupiers’ increasing demand for space and the lack of quality product.
In Q1 2025 the alternatives sector recorded investments of €272 million, up 447% compared to the same period last year. Appetite for operating assets, supported by excellent fundamentals, continues to drive investor interest in this sector, as evidenced by the transactions in the telecommunications infrastructure segment recorded in recent months. The pipeline for the coming months for this sector remains very strong, mainly due to the return of deals in the healthcare segment, CBRE said.
The development of the Living sector also continued, with investment volumes doubling compared to last year, totalling €205 million. The strong demand for housing in the main cities is helping to fuel investments in the acquisition or development of income-producing properties, particularly in the student housing and serviced flat segments. There is much development activity in the student housing sector, but demand from out-of-town and foreign students far outweighs supply, especially as enrolment in the main university cities continues to grow.
