Summary and analysis of Italy's current industrial real estate market conditions.
Despite solid market fundamentals, extended corporate decision cycles amid economic uncertainty have driven the sharp YoY decline in logistics take-up for H1 2025, which totalled 950,000 sqm. Absorption continues to be driven by 3PLs, followed by retail and increasing manufacturing.
From a capital market perspective, the industrial & logistics sector remains a prime investment target, with a compression of prime yields ( 5.4 net-on-net) indicating renewed confidence in the Italian market, which continues to attract Core+ and Value Add capital.
Investment volumes reached €800 million in H1 (+66% YoY), with a positive year-end outlook as several transactions under exclusivity are poised to substantially boost sector volumes in upcoming quarters.