The logistics sector in Italy attracted more than double the investment volumes in the first six months of 2018 than in the first half of 2017, according to new research from BNP Paribas Real Estate (BNPPRE).
Italian logistics registered €410 mln of inflows during the first half of this year, peaking in the second quarter with a result of €200 mln, +270% compared to the same period of 2017.
In Q2 2018 the Italian commercial real estate market registered €1.7 bn of invested capital across all commercial asset classes, -40% compared to Q2 2017. The total volumes recorded from the beginning of the year amount to around € 3.2 bn, -35% compared to H1 2017.
The fall was largely due to the fact that 2017 was a record year for investments in the Italian real estate market.
This has meant considerable reductions in some sectors. Offices, which attracted about 50% of total volumes in Q2 2018 (€880 mln), decreased by 20% compared to the previous year. Taking into account the first six months, figures decreased by 43% compared to H1 2017.
BNPPRE said that retail displayed a positive trend in H1 2018, attracting over €1.2 bn of investment, an amount in line with H1 2017.
Italy has been experiencing hotel investment growth since 2014, but that trend has now slowed: investments in this asset class declined by around 50% in both Q2 and H1 2018.
Big decreases also occured in the 'other' category (student housing, data centres, barracks and cinemas), BNPPRE revealed. H1 2017 recorded investments of €860 mln, whereas in H1 2018 only €130 mln was invested.
Milan's positive performance
Milan registered a positive performance in Q2 due to the €775 mln invested (+12% YOY). In the city, office deals are growing again, with levels at almost €600 mln (+64% compared to Q2 2017).
‘In light of what has transpired so far, we could reasonably expect a year-end decline compared to 2017's record-setting result,' commented Cristiana Zanzottera, head of the research department at BNP Paribas Real Estate Italy.
‘The focus on the Italian real estate market remains high, but within a context that sees a reduced availability of products for sale. In the future it will be a question of creating the right opportunities for all types of investors interested in a market that is increasingly international.’