Italian commercial real estate reaches a record value of 7 billion euros

According to data released by Savillis, in the first half of the year 2026 was invested in Italian commercial real estate approximately 7 billion euros: a figure above the average of the last 10 years and strongly up on the same period of 2025.

The first part of 2026, as was also the case in 2025, ended with a record number of transactions in a market that continues to be characterised by the prevalence of deals worth less than 50 million euros (72% of the total volume); the 10 most significant transactions by value during the period account for approximately 41% of volumes.

Interest in development and regeneration activity remains strong, accounting for more than 20% of the period’s volumes and three deals out of 10. Milan is confirmed as the leading market with approximately 42% of total volumes, but thanks to offices and hospitality, Rome is consolidating its market share (10%).

The international currency continues to prevail, accounting for approximately 73% of total volumes.

“The first half of 2026 sets a record for the Italian market: just over 7 billion euros invested, +33% compared with last year, with international capital at 73%. Retail is leading, with 1,9 billion and the best first half ever, but the strength of the market is broad-based. Offices are also returning to positive territory, albeit with increasingly selective investors, while living is up 30%, supported by development activity and growing interest from institutional capital,” says Marco Montosi, head of investment.

Positive outlook

The outlook for the coming months remains optimistic: after a 2025 of expansion, investment volumes are expected to grow further. Uncertainty remains in the international macroeconomic and geopolitical environment, but the market’s positive fundamentals place Italy among investors’ preferred destinations. The investment pipeline for the coming months is substantial. In some sectors, such as retail andhospitality, investors core will be more active, but value-add will continue to be the true protagonists of the market. As regards monetary policy, markets do not expect any further rate rises in the second half of the year.

“In a global context still characterised by uncertainty, the Italian economy continued to show signs of growth in the first part of 2026, supported by investment and the construction sector. Despite the rise in inflation, household consumption benefited from stronger purchasing power and a resilient labour market. For the second half of the year, we expect investment activity in the Italian real estate market to consolidate; the market continues to attract capital thanks to selective opportunities across different sectors and in areas with the greatest potential,” says Elena Zanlorenzi, head of research & and marketing at Savills for Italy.

Retail leads the market

The retail sector is confirmed as the market leader, followed by hospitality and logistics. In the retail market, the outlet segment leads, thanks to three deals involving 4 assets, followed by shopping centres, which saw 7 assets change hands, and retail parks; the high street segment accounts for 49% of volumes thanks to the transaction on Via Monte Napoleone 8 and growing interest in Rome, as well as Bologna, Turin and Naples.

Hospitality broadens its horizons

In thehospitality sector, horizons are broadening: the geographies and types of assets targeted by investors are varied, with demand consolidating for prime assets in major destinations such as Milan, Rome and Lake Como. Interest in resorts is also growing in mountain locations. After a 2025 with investment volumes rising sharply, in the first half of 2026 the sector I&L recorded growth of more than 50% to rank third among the sectors; the period was characterised by record take-up (1,6 million sq m; +62% YoY) and rising rents, supported by strong demand. Expectations for this sector remain positive thanks to a dynamic leasing market and the numerous deals in the pipeline.

Selectivity prevails in the office sector

The office sector continues to be characterised by growing selectivity on both the leasing and investment sides, affecting both investment volumes and space absorbed. Transactions by owner-occupiers and private investors are increasing, and Milan is confirmed as the leading market, accounting for 54% of recorded volumes; the market share of the Rome market is increasing (29%).

With prime rents continuing to rise, Grade A vacancy remains stably below 2% in the two CBDs, while the average size of leased spaces continues to decrease. The living sector accounts for just under 900 million euros in the half-year, mainly thanks to BTS and PBSA developments, primarily concerning the city of Milan in the former case, and other major university cities such as Rome, Padua and Florence in the latter.

This article was translated from the original Italian version with the assistance of artificial intelligence. In case of discrepancies, please refer to the original Italian version.