Italy Capital Markets Market Dynamics, Q1 2026

In Q1 2026, investments in Italy's real estate market reached approximately €3.5 billion, including developments and share deals, with retail and hospitality emerging as the leading sectors based on final asset destination.

International investors accounted for over 60% of total investment volumes. Private wealth investors represented over 16% of total transactions, with investments exceeding €400 million primarily concentrated in the office sector.

Prime yields recorded slight compression for offices in Rome to 4.5% and in high street retail to 4.0%. Yields remained stable for offices in Milan at 4.0%, logistics at 5.3% net-on-net, shopping centres at 6.5%, retail parks at 7.0%, healthcare at 5.75%, and multifamily at 4.5%.