Italy’s investment volume in 2022 was €11.7 billion, the second-best result ever (after 2019), largely due to a strong recovery after the peak of the pandemic, driven by the excellent performance of Logistics and a renewed interest in Offices.
The start of the process of monetary policy normalisation and the subsequent interest rate hikes have pushed up the cost of capital, slowing down both ongoing transactions and the origination of new deals in the second half of the year. This trend impacted all asset classes and affected Italy in a similar way to other major European markets. 2023 will continue to be influenced by investors adopting a wait-and-see approach as they seek a new balance for pricing expectations.
In 2023, investments in Italian commercial real estate will continue to be focused on achieving high standards of sustainability and improving the ability to respond to the everchanging needs of tenants.