Summary and analysis of Italy's current industrial real estate market conditions.
Insight
14 May 2025
Italy Industrial Market Dynamics, Q1 2025
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Italy's industrial and logistics market fundamentals remain robust, despite slower absorption in Q1 2025 compared to last year, but in line with the 10-year average. Take-up was driven by 3PL, manufacturing and retail operators.
The slowdown in take-up is also related to an absence of large transactions above 50,000 sqm, with economic uncertainty impacting occupiers' expansion and relocation decisions.
From a capital market perspective, the industrial & logistics sector remains a prime investment target, driven by significant repricing over the past 24 months leading to prime net yields of 5.5%, renewed core investor activity, and persistently positive market fundamentals.