Italian Logistics Snapshot | Q4 2023

The Italian economy is expected to grow by 0.5% in 2024|Looking ahead, latest market projections indicate an average GDP growth of +0.5% in 2024. The impact of inflation is slowing down and there are signals that interest rates will fall towards the end of 2024.

Logistics investment remains subdued| Italian industrial and logistics (I&L) investment volumes fell by 42% in 2023, a better performance if when compared to the wider pan-European results. Nonetheless, the I&L sector maintains its position as the first asset class in the Italian Real Estate Investment market, in terms of investment volumes (30% out of total), and the asset class remains a target for real investors thanks to its enduring market fundamentals.

Logistics take-up driven by 3PL demand | The Italian logistics occupiers market remained robust in 2023, confirming an overall take up in line with the record of 2022. Demand was driven by grade A assets and by 3PLs operators, seizing the opportunity created by the growing demand as the retail and e-commerce sectors adopt more streamlined inventory management practices.