Italy led logistics real estate investments in Europe during 2022, reaching a value of €3 bn, up 7% year-on-year.
By comparison, the European market registered a drop of 15% to €58 bn, according to the 2023 Logistics Real Estate Market Report by Scenari Immobiliari and Sfre.
The logistics segment accounted for 25% of total investment real estate volumes and is second only to offices in terms of investor preferences, accordng to the research.
The increase in logistics investments in Italy was mainly sustained by the progressive consolidation of interest on the part of foreign institutional investors and the growing pressure exerted by demand for quality space in markets that are complementary to the main ones.
Northern Italy accounted for 82% of total investments, followed by Central Italy (17%), the south and the islands (1%).
Francesca Zirnstein, general manager of Scenari Immobiliari, commented: ‘The phenomenon of reshoring, with the return or relocation of companies to realities different from those chosen in the last 20 years, is affecting every part of the market and every commodity category and consequently fully involves the logistics sector, directly or indirectly.’
The logistics real estate stock in Italy current totals 46 million m2, an annual increase of 2 million m2 (+4.5%), corresponding to about €2.0 bn, while the estimated pipeline for 2023 is just under 2.3 million m2.
The report claims the logistics real estate market in Italy is now mature and remains ‘one of the best real estate asset classes'.
The supply chain's resilience is confirmed by the weighted increase in net returns nationwide, which stand at 5.8%, with even lower peaks for prime locations and trophy assets, between 4.8% and 5.7%, and further declines for last mile properties.
Rents in 2022 remained more or less constant, with faster growth in the north, while prices increased on average by just over 3%, mainly from growing yields and the nationwide increase in average rents.