The office property market - Italy

The commercial real estate market is a complex and multifaceted sector composed of different types of assets and dynamics that make it one of the key pillars of the global economy. At a general level, this market includes buildings and spaces used for economic activities, such as offices, shopping centers, logistics properties, hotels, and multifunctional spaces. Each segment responds to specific investor and user needs, helping to determine overall trends and performance. In the office segment, demand is driven by changes in work patterns, with strong interest in sustainable, energy-efficient buildings equipped with advanced technologies for flexible work. In the retail and shopping center sector, the transformation of consumption habits, influenced by e-commerce, has spurred the emergence of hybrid spaces that integrate commerce, entertainment and personalized experiences. In logistics, the expansion of e-commerce has increased the demand for modern warehouses and distribution hubs, especially in strategic areas close to major urban centers and major transportation networks. Globally, the commercial real estate market was worth about $4.56 trillion in 2024 and is expected to reach $9.48 trillion in 2034. This growth reflects international interest in new emerging markets, as well as the redevelopment of mature urban areas with regeneration and sustainability projects. In Europe, data indicate a market value of $1.52 trillion in 2025, set to rise to $1.80 trillion in 2030, with growth driven by investment in infrastructure, green office space and redeveloped shopping centers. In Italy, the commercial real estate market is mainly composed of office, retail properties and logistics space, with an increasing focus on urban regeneration projects and investments in large cities such as Milan and Rome. In 2023, the market was worth a total of 6.1 billion euros, with a forecast of 7.26 billion euros by 2028. However, investment in the sector has fluctuated in recent years, falling from 2.6 billion euros in 2016 to 800 million euros in 2023, with a slight recovery expected in 2024 to 850 million euros. The reduction in volumes has been driven by rising interest rates and geopolitical uncertainty, which have curbed access to credit and reduced investment activity. Among the main components of the Italian market are office transactions in metropolitan areas and the development of logistics parks in strategic industrial zones. The hotel sector is another relevant segment, with investments mainly in luxury accommodations and business tourism. In addition, the market is influenced by real estate investment funds, such as COIMA SGR, Kryalos, and InvestiRE SGR, which manage multi-billion-dollar assets and play a key role in enhancing the value of commercial assets.