Italy's real estate investments surge to a six-year high

In 2025, the Italian real estate market saw a significant rebound, with investments reaching €12.4 bn, marking a six-year high and nearing a record.

Italian real estate market - Dils

According to Dils' research, this 23% year-on-year increase was largely driven by a strong fourth quarter, which saw €4.3 bn in investments. 
Retail was the top performer, attracting €3.4 bn in investments—a new all-time high, up 39% from 2024. Factory Outlets, High Street, and Shopping Centres were key segments, including three transactions over €400 mln.
Hospitality remained highly attractive, securing nearly €2.4 bn, a 30% increase from 2024, focusing on luxury and iconic assets in major cities like Rome and established tourist destinations.
Logistics reached approximately €2.2 bn in annual investments, up 31% from 2024, with nearly €1 bn in Q4 alone. Take-up remained strong at 2.5 million m2, the seventh consecutive year over 2 million m2, maintaining stable rents.
Office investments totalled €1.9 bn for the year, a 14% decrease year-on-year, but Q4 showed solid growth at €800 mln. Milan dominated with over 70% of investments, followed by Rome. Prime net yields in Milan and Rome began to compress due to core deals on iconic assets. Office take-up in Milan remained stable at 405,000 m2, while Rome saw a 14% decline year-on-year, though demand for Grade A/A+ properties was strong.
Living investments soared to over €1 bn, a 70% increase from 2024, driven significantly by Student Housing, which doubled its investment volume. Milan led residential investment (66%), with Turin, Rome, and Bologna also attracting capital. The broader residential transaction market grew by 8.5% nationwide in Q3 2025.
Alternatives attracted over €1.5 bn annually, with Q4 being the best in five years (€600 mln), largely due to healthcare portfolios and the sale of the Meazza Stadium.