Italy's retail sector leads market with €2.2b in investments

The Italian retail real estate market is booming, with record investments, a vibrant high street scene, and solid performance from shopping centers.

Retail - Savills

Retail led all real estate sectors in investment volumes during the first nine months of the year, according to Savills’ "Italy Retail Spotlight."
Over €2.2 bn was invested in retail, marking the highest figure in a decade and accounting for 29% of total market volumes. Notably, four of the year’s largest transactions were recorded in this sector.
In the Italian retail real estate market, 79% of investment volumes were directed towards out-of-town properties. Shopping centres were a major driver, attracting around €800 million in investments, which included the largest single shopping center transaction in the past ten years. Additionally, factory outlets re-emerged as significant players after a long hiatus, fueled by the sale of two major portfolios.
Conversely, the high street segment accounted for about 21% of the total investment volumes, with three of the recorded high street deals taking place in Florence. 
Italy's high streets continue to attract new brands and innovative store formats, driven by increasing international tourism. Milan and Rome remain prime locations, with Florence also seeing significant activity. Upscale coastal, lakeside, and ski resorts are now established destinations for both brands and investors.
Footfall in shopping centers saw a slight increase compared to the first nine months of 2024, while turnover remained consistent with the previous year. Yields and prime rents are expected to stabilize in the near future.
Francesca Cattagni, head of Retail Agency, stated: "Retail remains the key market trend, with increasingly intense competition from brands that now more than ever want to strengthen their presence in major luxury destinations, high streets, and out-of-town destinations."
Alberto Albertazzi, head of Retail Management, added: "The third quarter of 2025 confirms the strength of the Italian shopping center sector: moderately growing traffic, stable revenues, and positive performance, especially in the personal care and services sectors. The growth potential is high."