ITALIAN REAL ESTATE MARKET
TRENDS & OUTLOOK 2023/24
A Cushman & Wakefield publication
01
ECONOMY
02
OFFICES
03
RETAIL
04
INDUSTRIAL & LogIsticS
05
HOSPITALITY
07
INVESTMENT
08
09
SUSTAINABILITY
///////////////////////////
AGENDA
06
LIVING
Economic Indicators
H2 2023
Italy's GDP remained stable in Q4 2023, with negligible growth due to tight credit conditions and high energy prices, causing stagnation in consumption and a contraction in investment. Manufacturing experienced a downturn, while services remained stable, and construction grew thanks to tax incentives. Full year estimate stands at +0.7% growth compared to 2022, lower than +1.1% expected at the beginning of 2023. Labour market confirmed robust with employment that continued to rise in the second half of 2023 bringing unemployment rate at 7.7%. Wage growth consolidated in the second part of the year thus leading to a move up on path of the households purchasing power which experienced a sharp fall in Q4 2022. Households' savings grew as well in the second part of the year, which anyway continued to be lower than pre-Covid levels. The fight against inflations yielded to positive results as inflation fell, particularly the core part standing at 5.9% for the full year, quite below the 8.7% in 2022. From October, price growth in Italy was lower than the euro area average. The European Central Bank (ECB) kept key interest rates stable in the last meeting of 2023, anticipating their prolonged maintenance to contribute to achieving the 2% inflation target. Monetary tightening has led to decreased demand for credit while government bond yields have decreased, and spreads between Italian and German bonds have narrowed.
GDP
PRIVATE CONSUMPTION
UNEMPLOYMENT RATE
10YRS GOV. BOND YIELD
INFLATION
INDUSTRIAL PRODUCTION
+0.70%
7.7%
5.9%
+1.4%
4.3%
+3.1%
Italian bond yields increased standing at ca 4.4% as tightening policy continues to be in place. After peaking in the first quarter of 2023, the Italy-Germany 10-year bond spread is forecasted to converge to a longer-term equilibrium just above 1% by 2024. Rising interest rates are starting to weigh on firms’ physical capital investments as evidenced by lower capital goods production.
Against a backdrop of high inflation (7.8%), the Portuguese economy still recorded a 6.7% increase in GDP in 2022, the highest in the European Union, largely thanks to the positive performance of private consumption (+5.8%) and exports (+17.3%).
(2023 YoY )
(2023 YoY)
Source: Moody's (Jan. 08th 2024), ISTAT
(2023)
Click over to view the notes
10 YRS GOV. BOND YIELD
Outlook
2024
Recession was avoided in 2023 but the future economic outlook for Italy is still uneven, deeply linked to the global outlook which remains uncertain, dominated by geopolitical tensions, which are not expected to be resolved soon, and by still restrictive financial conditions for households and businesses. GDP projections for 2024 estimate a +0.6% growth, slightly lower than 2023, while subsequent years are expected to perform better with +1.1% growth per year. Inflationary pressure is expected to ease further over 2024 and the best forecasts are that it will continue to decline to near 2% in 2024 and consolidate toward this level in the short to medium term. Labor market is confirmed to remain solid and unemployment rate to slightly decline at 7.5%. Overall, we anticipate a gradual easing of monetary policy by the European Central Bank likely to take place in the second part of 2024: this will offer some relief for the real estate industry, both for investors and occupiers.
EXPORTS
+0.60%
7.5%
1.9%
+0.4% / +1.8%
+3.8% / +1.2%
+6.6% / +6.2%
scrivere un testo preso dall'outlook Anna Strazza
Thus, in 2023, Moody’s foresees moderate private consumption, a deferment of corporate investment and a slowdown in exports, with only the latter not forecast to recover in 2024.
Source: ISTAT & Bank of Italy
(2024 YoY)
(2024)
MILAN
Italy
Milan
TAKE-UP
NEW COMPLETIONS
AVERAGE DEAL SIZE
UNDER CONSTRUCTION
VACANCY RATE
412,000 sqm (-15%)
1,417 sqm (-13%)
11.1%
45,000 sqm
911,000 sqm
Note: variations refer to 2023 on 2022.
(Refurbishment)
(Speculative and Pre-let)
TAKE UP
AVERAGE SIZE
Take-up by semester and average deal size
The year ends positively for the occupier market; take-up for the second semester is 240,000 sqm, bringing the total value for the year to 412,000 sqm, above the 10-yr average (+14%) but below the record of last year (-15%). This result has been possible thanks to the delivery of a single asset over 45,000 sqm, related to a BTS transaction. Moreover, on top of the total yearly volume of leased space, there are 34,000 sqm of sub-leased space (i.e. high-quality spaces, recently leased which represent a "plug & play" solution), which represent a real competition for prime assets and leading the total year absorption to 446,000 sqm. The main demand drivers are ESG criteria and talent attraction / retention. An increasing attention to environmental issues is influencing occupier and investor strategies and therefore impacting developers who are aiming at the construction of highly performing buildings with one or more green certification. Moreover, the growing emphasis on sustainability has led to a renewed interest and focus on ‘green leases’, which incorporate commitments from both the tenant and the landlord to operate the building with environmentally sustainable principles (including carbon emissions, waste reduction, and adherence to energy efficiency regulations).
Source: Cushman & Wakefield
Main transactions
Note: variations refer to H1 2023 on H1 2022
“1.5 million sqm of new office expected by 2027. Circa 911,000 sqm currently under construction (36% pre-let) and 590,000 sqm of potential developments”. “Circa 170,000 sqm have been completed throughout the year (between New and Refurbishment) – of which 37% pre-let.”
Main new completions
Vacancy rate by zone
Main project under construction and potential pipeline
High-quality offices with strong ESG credentials represent one of the most significant opportunities in today's market and it is critical for office asset managers and owners in order to effectively manage investor, tenant and customer demand. Developers are aiming at the construction of highly performing buildings with one or more green certification. Such certifications work as guidelines for the efficiency of the buildings, pushing developers to increase the quality of buildings to reach a higher level certificate and be more competitive. Nowadays, decarbonization and energy optimization are central for the real estate sector, to achieve not only environmental performance standards but to also generate social value. An increasing number of landlords is aligning to the target of "net zero by 2050" required by the Paris agreement and are therefore carrying out a due diligence of their assets to estimate the capex needed to renew them. Many companies have also put lot of effort into "data monitoring" (i.e. collecting and analysing consumptions) to manage resources more efficiently.
Greater
Lisbon
Main projects under construction
Take up H1 23: 52,000 sqm Prime Rent: 700 €/sqm/year Prime Yield: 4.00% Pipeline UC 2023/2026: 245,000 sqm - pre-let: 31%
Take up H1 23: 10,000 sqm Prime Rent: 530 €/sqm/year Prime Yield: 4.50% Pipeline UC 2023/2026: 55,000 sqm - pre-let: 96%
Take up H1 23: 49,000 sqm Prime Rent: 470 €/sqm/year Prime Yield: 5.00% Pipeline UC 2023/2026: 256,000 sqm - pre-let: 39%
Take up H1 23: 39,000 sqm Prime Rent: 350 €/sqm/year Prime Yield: 6.00 % Pipeline UC 2023/2026: 349,000 sqm - pre-let: 28%
Take up H1 23: 23,000 sqm Prime Rent: 250 €/sqm/year Prime Yield: 6.50% Pipeline UC 2023/2026: 149,000 sqm - pre-let: 63%
CBD
CENTRE
SEMICENTRE
PERIPHERY
HINTERLAND
Click on
MIND Pipeline UC+Potential 2023-2026: 157,000 sqm CITY LIFE DISTRICT Pipeline UC+Potential 2023-2026: 85,000 sqm
SCALO FARINI Pipeline UC+Potential 2024-2027: 123,000 sqm PORTA NUOVA Pipeline UC+Potential 2023-2026: 244,000 sqm
SCALO DI PORTA ROMANA Pipeline UC+Potential 2023-2026: 252,000 sqm
SANTA GIULIA Pipeline UC+Potentia 2023-2026: - sqm
CBD Take up 23 96,000 sqm Prime Rent: € 700/sq.m/yr Prime Yield: 4.25% Pipeline UC 2024/2027: 245,000 sq.m - pre-let: 12%
CENTRE Take up 23: 16,000 sqm Prime Rent: 530 €/sqm/year Prime Yield: 4.75% Pipeline UC 2024/2027: 53,000 sqm - pre-let: 100%
SEMICENTRE Take up 23: 99,000 sqm Prime Rent: 480 €/sqm/year Prime Yield: 5.50% Pipeline UC 2024/2027: 221,000 sqm pre-let: 26%
PERIPHERY Take up 23: 108,000 sqm Prime Rent: 350 €/sqm/year Prime Yield: 6.50 % Pipeline UC 2024/2027: 340,000 sqm - pre-let: 22%
HINTERLAND Take up 23: 93,000 sqm Prime Rent: 250 €/sqm/year Prime Yield: 7.00% Pipeline UC 2024/2027: 53,000 sqm - pre-let: 55%
MIND
SCALO FARINI
SCALO PTA ROMANA
CITY LIFE DISTRICT
Pipeline UC+Pontial 2024/27: 73,600 sq.m
Pipeline UC+Potential 2023/26: 123,000 sq.m
Pipeline UC+Potential 2024/27: 268,000 sq.m
Pipeline UC+Potential 2024/27: 157,000 sq.m
PORTA NUOVA
Pipeline UC+Potential 2024/27: 199,000 sq.m
BICOCCA
Piepeline UC+Potential 2024/27: 46,000 sq.m
Prime rents
The focus on quality is paramount and is reflected in the higher rental values registered throughout the year, the prime rent for Milan CBD is €700/sqm/yr. Companies are willing to lease smaller spaces but with higher quality, which eventually result in higher rents, in particular for central, well-connected, green buildings. Prime assets are likely to have one or more environmental certifications, confirming the importance of ESG criteria; we have recorded a 10-20% increase in the rents for these properties in comparison to other high quality assets without green certifications.
ROME
Rome
UNDER REFURBISHMENT
243,000 sqm (+65%)
1,600 sqm (+59%)
7.4%
No completions recorded
180,000 sqm
Note: variations refer to 2023 on 2022
The year ends positively for the occupier market; take-up for the second semester is 90,000 sqm, bringing the total value for the year to 243,000 sqm the second best result in the last 10 years after the market's record in 2019, thanks to the fulfillment of sizeable pre-let transactions during the first half of the year. The majority of transactions, ca. 64%, are for small spaces (<700sqm), but during the year there was an increase in transactions for spaces between 1,000-3,000sqm, which accounted for 20% of the total, all for spaces in central submarkets. In particular, the CBD sub-market continues to gather occupier's attention, with 20% of spaces transacted in the year. Considering the total absorption per area, the Greater Eur has been the most active area with 48% of spaces transacted in the year; this value includes a big pre-let transaction at the beginning of the year for roughly 50,000 sqm. Secondary offices are suffering as occupiers downsize and/or move to Grade A spaces.
Main Project Under Construction and Potential Pipeline
“In Rome new stock comes mainly from refurbishments: Circa 180,000 sqm (8 projects) are currently being renovated. With some schemes reaching completion Pre-lets account for 41% of spaces under redevelopment”.
Take-Up 23H1: 23,900 sqm Prime Rent: 550 €/sqm/year Prime Yield: 4.25% Pipeline UC 2023/2025: 43,000 sqm pre-let: 33%
Take-Up 23H1: 36,700 sqm Prime Rent: 380 €/sqm/year Prime Yield: 4.75% Pipeline UC 2023/2025: 107,600 sqm pre-let/EU: 97%
Take-Up 23H1: 4,600 sqm Prime Rent: 280 €/sqm/year Prime Yield: 6.25% Pipeline UC 2023/2025: 15,000 sqm spec: 100%
Take-Up 23H1: 72,700 sqm Prime Rent: 360 €/sqm/year Prime Yield: 5.00% Pipeline UC 2023/2025: 165,000 sqm pre-let: 50%
Take-Up 23H1: 14,600 sqm Prime Rent: 150 €/sqm/year Prime Yield: 9.00% Pipeline UC 2023/2025: 43,000 sqm pre-let: 23%
GREATER EUR
FIUMICINO CORRIDOR Prime Rent: 200 €/sqm/year Prime Yield: 7.75%
SCALO FARINI Pipeline UC+Potential 2023-2026: 123,000 sqm PORTA NUOVA Pipeline UC+Potential 2023-2026: 244,000 sqm
TIBURTINA CORRIDOR Prime Rent: 140 €/sqm/year Prime Yield: 8.25%
TUSCOLANA CORRIDOR Prime Rent: 180 €/sqm/year Prime Yield: 7.75%
CBD Take-Up 23: 48,000 sqm Prime Rent: 575 €/sqm/year Prime Yield: 4.75% Pipeline UC 2024/2027: 42,000 sqm pre-let: 16%
CENTRE Take-Up 23: 44,000 sqm Prime Rent: 380 €/sqm/year Prime Yield: 5.00% Pipeline UC 2024/2027: 2,500 sqm pre-let/EU: 100 %
SEMICENTRE Take-Up 23: 7,000 sqm Prime Rent: 280 €/sqm/year Prime Yield: 6.75% Pipeline UC 2024/2027: - sqm spec: -%
GREATER EUR Take-Up 23: 117,000 sqm Prime Rent: 360 €/sqm/year Prime Yield: 5.50% Pipeline UC 2024/2027 : 121,000 sqm pre-let: 58%
PERIPHERY Take-Up 23: 27,000 sqm Prime Rent: 150 €/sqm/year Prime Yield: 9.50% Pipeline UC 2024/2027: 33,000 sqm pre-let: 9 %
TUSCOLANA CORRIDOR
FIUMICINO CORRIDOR
Prime Rent: €200/sq.m/yr Prime Yield: 8%
Pipeline UC+Potential 2023-2026: 123,000sqm
Pipeline UC+Potential 2023-2026: 252,000sqm
Prime Rent: €160/sq.m/yr Prime Yield: 8.00%
TIBURTINA
Prime Rent: €140/sq.m/yr Prime Yield: 8.50%
Piepeline UC+Potential 2023-2026: 46,000sqm
Like in the capital, considerable interest in Greater Porto and the quality of new buildings led to an increase in headline rents in most areas.
The chronic lack of readily available quality offices coupled with tenant demand in the central sub-markets, continues to push rents up, prime rents have risen by 10% YY, standing at 575 €/sqm/yr; while other submarkets confirmed values. (NB correction in values with the Semi Centre is due to an adjustment of the submarket borders). Moreover, Stock in strategic locations is decreasing due to conversion to hospitality or residential use.
Souce: Cushman & Wakefield
Outlook 2024
ITALIAN OCCUPIERS’ MARKET KEEP STEADY FOR 2024
HYBRID WORKING CHANGING MARKET SIZE
REPOSITIONING OR REPURPOSING STRATEGIES
RENT STABILISATION
RENT INCREASE
Corporate demand for office space in both Milan and Rome will continue to be active, above the long-term average but below the record levels achieved in the past 4 years. Most companies, particularly bigger corporates, announced plans to reduce their spaces (i.e banks) but the office space will continue to remain crucial for their business: the future focus will be more on quality than quantity. We’ll see some new release of prime space from such companies which will be not enough to offset the supply-demand unbalance, thus continuing to keep prime rental values at the top levels. Incentives packages expected to remain high.
Office spaces are no longer viewed as an area where people exclusively work, but have become spaces to meet, collaborate and share. Larger projects extend their range of services and create both work and leisure experiences.
The WFH disruption in the office sector is driving to the obsolescence, both technical and functional, of a large part of the stock in both Milan and Rome. According to recent estimate, quality stock accounts between 30-40% of the total. We are now seeing more investors targeting obsolete offices with value-add strategies aiming to create value by “future-fitting” the assets and capitalise on the expected faster repricing once the financing conditions will normalize. We are seeing some example of repurposing office buildings in central location in Rome into hospitality and/or residential while in Milan CBD and Central location are still appealing for office repositioning. Rethinking the office space will be a must in the near future.
Rent in all areas has stabilised, following a steady period of growth.
There will be fewer large transactions, compared to the past years, due to the mitigating effect of the hybrid working model, marking a decrease in average transaction size. Moreover, the shape of the space is changing with activity-based working (ABW) and biophilic designs (incorporating natural features into the office design) are rising in use, recognised as factors contributing to enhanced productivity and employee morale. The two-speed market in “future-friendly” buildings versus the rest will accelerate.
ITALIAN OCCUPIERS' MAKET KEEP STEADY FOR 2024
What occupiers want
TOP CRE STRATEGIC DRIVERS
OFFICE COMMUNAL SPACE PROPORTION TO DOUBLE
OFFICE OCCUPANCY LEVEL
COST, TALENT SOURCING / RETENTION AND ESG are the top three strategic drivers for real estate decisions in EMEA. This is not surprising given the elevated uncertainty since mid-2022, as inflation peaked, and interest rates began to rise. Given that cost pressure is the top challenge facing occupiers in 2023 and real estate is typically the second-largest expense category (after talent), CRE executives are looking for ways to thoughtfully reduce spend: reducing floorplans, subleasing space, mothballing underutilized or unused floors, and expanding in lower cost markets. That said, occupiers are willing to spend money on the right investments. This includes buildings that offer sustainability features and green certifications, as well as offices that increase employees’ attendance and engagement; talent attraction and retention is one of the main drivers of the demand as companies want to offer their employees a better workplace and experience than their competitors.
As difficult as the pandemic was on urban cores, any talk of a mass exodus out of Central Business Districts (CBDs) is overblown. They remain the most desirable location for companies’ office headquarters. Two-thirds of occupiers prefer headquarters locations in the CBD (57%) or in emerging creative urban areas (12%). Occupiers are signaling that they intend to remain in urban cores with their major offices. Eighty percent of firms have not considered moving their offices out of the CBD. In Italy, the demand concentrates in the CBD areas, as confirmed by the analysis of the average absorption in the last 10 years, which is equal to 27% of the total in Milan and 20% in Rome.
The targeted amount of communal space within the office has doubled compared to pre-pandemic levels (40-50% vs 20-30%), with majority of occupiers (89%) seeing the office as a place for creativity, innovation and a planned meeting point. Along with increasing communal spaces at their HQs, occupiers are looking at flexible offices and co-working spaces as a solution for an increasingly hybrid workforce.
Most occupiers are at occupancy levels that are below the pre-pandemic levels. Hybrid and remote work schedules have meant that employees are not in the office at the same rate as they had been prior to the pandemic. Among survey respondents, just over half of occupiers indicate that their office space is 31%-60% full on any given day. This will vary greatly by day of the week (Tuesdays are typically the highest and Fridays the lowest), but the weekly average remains below the 60-80% pre-pandemic norm.
CBD REMAINS THE PREFERRED HQ LOCATIONS
ESG IS RISING IN IMPORTANCE
ESG ranks #3 in EMEA (#5 globally and #6 in Americas). Companies’ focus on ESG has accelerated in the past two years. Goals and implementation plans for various ESG components are increasingly seen as essential to organizations’ long-term financial performance, corporate reputation, and ability to attract clients, investment and talent. Two-thirds of CRE executives indicate their firm has ESG goals that they have already begun to implement (42%) or are planning to implement. Companies appreciate the environmental value of incorporating sustainability into workplace designs and portfolio strategies. Accordingly, occupiers are ready to pay a premium to incorporate sustainability into the workplace and their office portfolios. On average, they are willing to pay up to a 22% premium for buildings with green credentials. In Italy corporates tend to lease smaller spaces but of higher quality and pay higher rents for green certified spaces reflecting ESG criteria, such spaces registered a 10-20% increase over other high quality assets without green certifications.
Top takeways
Fit out cost guide
COST, TALENT SOURCING & RETENTION AND ESG AS STRATEGIC DRIVERS
OFFICE COMMUNAL SPACE TO DOUBLE AS COMPANIES SEEK TO FOSTER CREATIVITY, INNOVATION AND COLLABORATION
OFFICE OCCUPANCY REMAINS LOW, DRIVING FURTHER FOOTPRINT REDUCTION
Cost, talent sourcing / retantion and ESG are the top three strategic drivers for real estate decisions in EMEA. This is not surprising given the elevated uncertainty since mid-2022, as inflation peaked, and interest rates began to rise. Given that cost pressure is the top challenge facing occupiers in 2023 and real estate is typically the second-largest expense category (after talent), CRE executives are looking for ways to thoughtfully reduce spend: reducing floorplans, subleasing space, mothballing underutilized or unused floors, and expanding in lower cost markets. That said, occupiers are willing to spend money on the right investments. This includes buildings that offer sustainability features and green certifications, as well as offices that increase employees’ attendance and engagement; talent attraction and retention is one of the main drivers of the demand as companies want to offer their employees a better workplace and experience than their competitors.
As difficult as the pandemic was on urban cores, any talk of a mass exodus out of Central Business Districts (CBDs) is overblown. They remain the most desirable location for companies’ office headquarters. Two-thirds of occupiers prefer headquarters locations in the CBD (57%) or in emerging creative urban areas (12%). Occupiers are signaling that they intend to remain in urban cores with their major offices. Eighty percent of firms have not considered moving their offices out of the CBD.
ESG ranks #3 in EMEA (#5 globally and #6 in Americas). Companies’ focus on ESG has accelerated in the past two years. Goals and implementation plans for various ESG components are increasingly seen as essential to organizations’ long-term financial performance, corporate reputation, and ability to attract clients, investment and talent. Two-thirds of CRE executives indicate their firm has ESG goals that they have already begun to implement (42%) or are planning to implement. Companies appreciate the environmental value of incorporating sustainability into workplace designs and portfolio strategies. Accordingly, occupiers are ready to pay a premium to incorporate sustainability into the workplace and their office portfolios. On average, they are willing to pay up to a 22% premium for buildings with green credentials.
Below, we have summarized the most relevant elements for the Italian market, to find out more link here for the C&W global report
With sustainability targets increasingly becoming the norm, the focus, for many landlords, has been on ensuring their assets are aligned with legislative requirements as well as increasingly meeting tenant expectations, thus future-proofing their assets against obsolescence. In the office sector most, if not all, major companies have adopted some form of hybrid working model as well as more visible practices to foster and promote diversity, equity, and inclusion (DE&I). The role of technology has increased in importance: both as an enabler of change and as a means of measuring its impact. Together, these factors mean that the fitting out of space goes beyond looks, to include how the space contributes to a company’s financial, social, and sustainability goals whilst also reflecting corporate brand and culture. Over the last couple of years costs of energy and materials has risen exponentially. Inflation has proven to be more persistent than many economists originally envisaged, forcing downstream pricing to rise. On top of this sharp increases in fuel costs have increased transport costs adding to pricing all along supply chains. In line with this, fit out costs have risen, though with little change across the proportionate share of cost splits (A/V, furniture, Fit out and professional services). Italy recorded an average increase between 15-20% compared to the 2021/22 values considered in the 2023 Cost Guide, which in some cases is now lessening. Moreover, the issues with material shortage which was linked also to the Superbonus 110% (a maneuver intended to boost the construction industry strongly hit during the pandemic) has also decreased compared to 12/18 months ago and is now in line with normal timescales. For more detailed information, please check out Cushman & Wakefield's Fit out cost Guide [link here]
Average office fit out cost (€ per sq.m)
LOW
MEDIUM
HIGH
- Limited meeting facilities less than 10% of space. - Paint to all walls. - Low specification finishes and carpet throuhout. - Vinyl flooring to cafeterias. - Minimal alterations to air conditioning and ventilation. - Data points to equal desk positions. - Locally procurement furniture workstations.
- Meeting facilities around 10%-20% of space, with part single glazed partitions. - Alterations to less than 25% of ceiling. - Plasterboard ceiling to meeting rooms. - Feature wall finishes to reception and cafeterias. - Medium specification carpet and finishes. - Hard flooring to reception. - Alterations to ariconditioning & ventilation to sult cellurosation. - Multiple data points to each desk position.
- Meeting facilities to over 25% of space, with double glazed partitions. - Alterations to ove 25% of ceiling. - Features & plasterboard ceiling to reception and offices. - High specification carpet. - Bespoke joinery to meetings rooms and offices. - Hard floating to cafeterias and finishes. - Modification to air conditioning/ventilation along with new air- conditioning units. - Additional feature lighting. - Wired data provision (future flexinility). High and and /or imported furniture
Quality space is decreasing rapidly as tenants seek to upgrade; strong competition for prime spaces is leading rents to a futher increase of the coming months especially in strategic locations
"All-in" fit out costs
Fit out cost (€/sq.m)
Reinstatement cost (€/sq.m)
Rome prime rents
Lack of readily available quality offices coupled with tenant demand centered around the seat of Government, is behind the rise in rents within the CBD, while other submarkets confirmed values. (NB correction in values with the Semi Centre is due to an adjustment of the submarket borders) Moreover, Stock in strategic locations is decreasing due to conversion to hospitality or residential use.
CONSUMER CONFIDENCE INDEX
The retail sector continued the recovery path in the second half of 2023 and the annual performance has further confirmed the previous trends. The latest data on retail sales in shopping centers (Source: CNCC-EY) indicate that 2023 achieved a growth of 2.4% compared to 2022 and a recovery of 1% compared to the pre-covid level (2019 data). The sectors that led the recovery were F&B (+15.8%) and Personal Care and Wellbeing (+10.4%). The number of visitors in shopping centers also increased significantly in 2023, with a rise of 6.8% compared to 2022. This reduced the gap with 2019 footfall to 9.2%. E-commerce recorded a modest growth of 1% year-on-year on the B2C side, and 8% on the product side, mainly due to inflation rates. The growth trend is stabilizing. The sectors that performed best were Tourism and Transportation (+30%), along with Beauty (+11%), IT and Consumer Electronics (+8%) and Publishing (+8%). On the supply side, 2023 recorded few new openings and pipeline remained steady.
Total
117 (-1.7%)
Food Retail
(-11.5% YoY) (-2.1% QoQ) total
Non-food Retail
+8%
Online shopping growth
E-COMMERCE
RETAIL SCHEMES
92,000 sqm H2
125,000sqm New Completions
286,000 sqm
Pipeline 2024-2025
1
3
4
2
Calendar and seasonal effects adjusted deflated; Index base 2015 = 100
Source: INE
In the quarter preceding the survey
Until 2025
Click hover to view the notes
Sources: 1 Moody’s analytics (January 2024) 2 Osservatorio eCommerce B2c Netcomm – School of Management del Politecnico di Milano (October 2023) 3. Osservatorio CNCC e EY
13%
Online purchases penetration on total (online + offline) retail spending
103.97
Retail properties are in need of urgent revitalization and modernization to afford the unprecedented challenges the real estate market is facing. These challenges involve numerous players, including owners, operators, asset, property and facility managers to shape a successful future for the retail sector. F&B plays an even more fundamental role in this transition, significantly contributing to creating experiences and marketplaces. ESG credentials are even more essential in this sector and can contribute to create future liquidity and financing for retail assets.
Dados deflacionados e ajustados de efeitos de calendário e da sazonalidade; Índice com base 2015 = 100
Fonte: INE
No trimestre anterior ao inquérito
Até 2024
Retail stock evolution
Source: Cushman & Wakefield * Forecast
Out of town
Schemes
Retail stock evolution | recent opening
The second half of 2023 saw the opening of Merlata Bloom shopping centre in Milan (November 2023). Worth mentioning that Merlata Bloom is part of a vast urban regeneration project named Cascina Merlata, requalifying a portion of the previous Expo area which will add a new and modern reality to the Northern part of Milan. In addition, a number of existing schemes went through significant requalification and modernization projects including Le Gru (Turin), Limbiate (Milan), Le Porte di Mestre (Venice) and Bari Blu Food Village (Bari). Some development projects such us To Dream extension (Turin) and Waltherpark (Bolzano) slowed down due to administrative or commercial contingencies. Some others are expected to open in the course of the next year, such as Maximall Pompei (Pompei), Waterfront Mall (Genoa) and Chorus Life (Bergamo).
Pipeline 2024 - 2025 | GLA under development
Main luxury transactions
The luxury market registered a lot of movement in the most attractive high streets, testament to high-end brands’ interest for the best location. Not only the popular Milan and Rome captured attention, but also other key Italian cities, such as Venice, Florence and Naples, due to the significant presence of domestic and international tourists. In addition, luxury brands started to widen their horizons to exclusive holiday resorts to capture a larger audience and geographically broaden their offer. Demand is therefore including new shopping destinations and following evolving market strategies of luxury retailers; historic maisons are now enriching their offer, and exploring new fields such as home design, beauty and hospitality.
560 (=)
New openings
64%
High Street Retail
45%
F&B
5
Non-random sample of retail demand aggregated by Cushman & Wakefield based on public sources and targeted fieldwork
Demand
Mouse hover to view the notes
Luxuy Market
Positive feeling for the high street market of the main Italian cities. Important transactions required longer negotiation periods, but Landlords and occupiers are becoming partner to reach common success. Some retailers show interested even in cities usually considered secondary. High attention from international brands, some important negotiations were successfully closed, thus will bring new market entries in the first part of 2024. The second part of the year saw significant leasing activities confirming stable rental values.
230 (+16)
89%
57%
High street market
The food & beverage sector is playing an important role in the renovation cycle shopping centres are facing, since food courts and food halls are the key to attract visitors and improve fundamentals. On the larger hospitality scale, star-rated restaurants and luxury hotels are becoming the winning combination, in particular in high competitive markets such as Milan, Rome, Venice and Florence.
100 (+71)
90%
56%
F&B market
Main high street transactions
Main F&B transaction
Exceptional demand for spaces along the exclusive Milan, Via Montenapoleone and Rome, Via Condotti drove the luxury high streets in the top 10 ranking of the most expensive retail locations in the world, accordingly to MSATW 2023 edition . Prime rents respectively registered a 20% and 17% YoY increase in Milan and Rome. Venice registered a 7% YoY prime rent increase, whilst other cities maintained stable prime rental values. Shopping centres and retal parks prime rents remained stable in the course of the second semester of 2023.
(LINK)
FULL BRAND EXPERIENCE IN PERSON
INTERNATIONALS ARE BACK
SHOPPING CENTRES: REVITALIZATION AND MODERNIZATION
- Physical stores confirmed their importance in the shopping experience process, representing the point of contact between brand and customer as people increasingly place value on experiences and convenience. - Pop-up stores now play a crucial role in sales strategies, offering temporary and special collections to reinforce brand awareness.
- Physical and digital sales finally found the correct balance and coexist in multichannel sales synergy. - Retail and logistics are building up a new chemistry to support modern multichannel sales.
- International brands looking for opportunities in Italy in the first half of 2023 successfully identified their future stores – they will enter the Italian market in 2024, in high traffic city centres and modern assets. - Some others are still exploring the market but are willing to expand their network in Italy in the near future.
- Revitalization and modernization are the key words for the future of shopping centres. - Retail schemes are reinforcing their green vocation through energy efficiency and saving technologies, thus improving buildings efficiency and resilience. - Asset management strategies will be more than ever crucial to awaken investors’ interest towards this asset class.
SYNERGIES CREATE A NEW, MODERN RETAIL
A WELL-POSITIONED SECTOR READY TO REGAIN INVESTORS’ INTEREST
- Good trading figures, coupled with reasonable asset valuations as the sector emerges from a decade of pain, leave the retail sector well-positioned to catch the eye of more opportunistic investors in 2024. - The mix of good fundamentals and high returns supported by the expectations of a reduction in financial rates let envisage a recover of retail investment activity in 2024.
In 2022, trading activity in Portugal maintained an upward trend, with the export and import of goods recording year-on-year growth of around 20%, against a backdrop of a slowdown in price increases in the final months of the year.
PIPELINE UNDER CONSTRUCTION
PRIME RENT MILAN - ROME
19,100 sq.m
1M sq.m
1.1M sq.m
2,700,000 sq.m
€65 sq.m/yr
(-7%)
(3.5%)
(BTS/BTO/Spec.)
(Speculative)
6
Excluding fuel and lubricants
Note: Data refer to the comparison between the first half of 2023 and the first half of 2022.
(+16.56%)
(-11%)
(-60%)
The occupier market maintains the good trend recorded last year, which was the best year ever, with absorption almost in line for both semi-annual and annual volume (1.5 million sqm and over 2.7 million sqm respectively). Demand is increasingly moving towards those assets capable of responding to new requirements and to the highest standards in terms of environmental efficiency and technology. Sustainability certifications are a must have for global players and large companies. Analyzing transactions size throughout the year, the majority were for spaces between 5,000 and 25,000 sqm (accounting for 67% by number of transactions and 44% by volume during this period); Milan, Piacenza, Bologna and Verona have been the preferred destinations; moreover, compared to the past, emerging locations such as Alessandria and Mantua are consolidating as new markets.
Take-up by semester
Source: Cushman & Wakefield; IPI
Increased interest in speculative development, as opposed to buit-to-suit projects, was confirmed also in the second semester: considering the total take-up Q1/Q4 44% of the volume was for speculative projects and 20% for build to suit assets. The speculative pipeline has decreased constantly during the year as a consequence of the higher construction costs, difficulties in accessing credit and supply chain disruption, registering an even more severe fall in the last quarter, partly due to the completion of many projects (-83% compared to the end of 2022). Given the strong demand for high quality spaces and the decrease in the availability of projects in pipeline will bring to a significant reduction of the availability in the near future.
- If we consider the last three years of the Logistics occupier market in Italy, it is evident as 3PL, Retailer and e-commerce are confirmed as the most active players. - 3PLs have consistently accounted for almost 60% of the square meters leased in the last years, reaching 62% of the volume transacted in 2023; - Retailers have increased market share in the past three years, accounting for 18% of the annual volume; - E-commerce, despite slowing down from 2020, maintains an active demand, as consumers are opting for the convenience of online shopping; - Follow the Manufacturing sector, which increased its share year on year, accounting for 6% of the annual volume.
Among the main future supply currently under construction is the development of the second phase of Aquila Capital's project in Azambuja; and the entry into the market of Montepino, which recently reached an agreement with Leroy Merlin to build what will be the largest logistics platform in the country, in Castanheira do Ribatejo.
Take up by tenant sector
Excluindo combustíveis e lubrificantes
LOGISTICS WAREHOUSE
(>10,000 SQ.M)
€65/sq.m/yr
Big Box Distribution Centers - logistics units of 10,000 sq.m plus, used for storage and distribution of goods. Units will typically be located on the outer edge of the city and in the proximity of major road junctions. Facilities may also be close to other transportation hubs (road/ rail/ air/ water networks). Ca. 3-5% office content. In some geographies such larger units may not exist, thus rents/ yields should reflect what is considered major logistics facilities in those markets. Typically, the building coverage ratio is 50%.
Porto
LAST MILE / COURRIER LOGISTICS
(5,000 - 15,000 SQ.M)
€110/sq.m/yr
Last Mile/for Courier – units will typically be in the region of 5,000-15,000 sq.m. Ideally located in the city hinterland or in proximity of motorway junctions in the vicinity of major metropolises – within about 20 minutes from the city center. The unit could be used for courier activities and/or for urban distribution of goods. Units may provide cross-docking for transfer of goods between truck and vans; in this case the width of the warehouse should be in the range of 40/50 meters. Units are likely to have ca. 5%-10% office content. The characteristics of this type of assets are: high number of loading bays, floor to ceiling height not necessarily over 7 meters, good maneuvering areas and quantity of parking lots. Typically, the building coverage ratio is 30%.
OCCUPIER ACTIVITY: SHOULD CONTINUE ON A POSITIVE TREND
INCREASED INTEREST IN URBAN LOGISTICS
ESG REQUIREMENTS WILL INCREASINGLY BE A DEMAND DRIVER
Despite the discomfort caused by the macro-economic situation, the demand will remain stable. Although the growth in online retail sales volume has been relatively subdued in 2023 due to consumers scaling back spending both online and overall, forecasts indicate a return to growth in the coming years. The expansion of online retail and the necessity for logistics properties to meet delivery demands are expected to persist into 2024. The demand will be increasingly driven by ESG criteria, which will be a key requirement for those occupiers focusing on sustainability and on the well-being of employees.
Prime logistics rents have grown at extraordinary levels over the past few years, by an average of 22% across Italy in the last five years and of 9% only in the last year. In the current climate of emphasising operational costs, occupiers will be more cautious in their strategies, with a focus on sustainability of rents and flexibility in contracts, as a result Prime rents will continue to grow, although not as fast as in the past.
Urban (or proximity) logistics continues to drive high demand, to satisfy a still high online retail: whilst the levels seen during the pandemic have fallen back, online retail still typically accounts for a higher volume of retail sales than before the pandemic. This means that the need for online retail fulfilment of parcel deliveries is still high. Read more in our EMEA Logistics & Industrial report “City Logistics” to understand how city logistics real estate strategies are evolving.
A significant structural shift impacting all property categories, including logistics, is the occupiers' demand for spaces that prioritise sustainability. Given that the lifecycle of logistics and industrial real estate is typically longer than of office and retail spaces, there is a pressing need for higher-quality environments that help deliver on occupiers' sustainability goals. This demand is expected to prompt occupiers to choose buildings with higher sustainability credentials to align with their corporate ethos or brands regarding sustainability , some doing so rapidly, consequently driving transactions.
[CEROS OBJECT]
A RENT GROWTH IS STILL EXPECTED, BUT AT A SMALLER PACE COMPARED TO LAST YEARS
(link)
Tourism
Indicators
Data on Italian tourism show the undeniable recovery of the sector, with the accentuated resilience of the main leisure sea, mountain and lake tourism destinations, and the discovery by domestic and international travelers of previously unpopular Italian regions. Specifically, 2023 is estimated to record 154 million domestic overnight stays (+12% vs 2022) and 120 million international overnight stays (+18% vs 2022). In addition, there has been a sustained recovery in air travel demand, with 183 million passengers between January and November 2023 (+20% compared to the same period in 2022). The growth in tourism demand will only translate into real development opportunities if local operators are able to intercept the needs of new travelers and respond adequately to them. Therefore, the large supply of accommodation facilities requires investments in digital innovation and efficiencies in their environmental and social sustainability. In terms of performance, the RevPAR (Revenue per Available Room) recorded in the first 11 months of 2023 reached €153, an increase of +23% compared to the same period in 2022, fueled by an increase in both the average ADR (+12% vs 2022) and the occupancy rate (+10% vs 2022).
DOMESTIC OVERNIGHT STAYS
INTERNATIONAL OVERNIGHT STAYS
REVPAR
AIRPORT TRAFFIC
OCCUPANCY RATE
154M*
AVERAGE ADR
Sources: Oxford Economics, Assaeroporti and STR *Estimated data
(+12% on 2022)
(+18% on 2022)
(+13% on 2022)
(+24% on 2022)
(+10% on 2022)
Foreigners 46%
Foreigners 49%
120M*
183M
passengers (+20% on 2022)
FOREIGNERS:
65%
ROOM SUPPLY
(+1.5%on 2022)
69%
€147
€212
RevPar index (2023 vs 2019)
The Italian hotel sector in 2023 recorded one of the strongest performances in Europe. The full-year RevPAR is expected to reach approximately €147 in 2023, which is +45% and +24% more than in 2019 and 2022, respectively. This has been driven primarily by a strong ADR increase, which is forecasted to climb to €212, +46% above 2019 levels, thus by far surpassing the compounded inflation over the same period (approximately 17%). The hotel occupancies also notably improved, expected to reach approximately 69.3%, almost +10% compared 2022. However, it is still about 1-percentage point below 2019, leaving the room for further growth in 2024. Among the top four Italian urban destinations, the highest RevPAR was recorded in Venice, followed by Florence, Rome and Milan. While the overall supply growth is limited across most Italian markets, it is worth noting the influx of upper-upscale and luxury hotel supply with leading national and international brands.
Hospitality performance index Italy
Source: STR
7
The Short-Term Rental segment attracted 9.8 million overnight stays and 4.1 million guests, in line with the hospitality sector a growth of about 90%, but still below 2019 (4% and 10%, respectively). Total revenue also doubled compared to the previous year and was 14% above 2019, standing at €437 million; and compared to this latter year, RevPAR recovered 17%, to €36.7.
New Supply
H2 2023 was marked by a number of new openings (rebranding/conversions/renovations/developments) of 5-star facilities, mainly located in Italian mountain and lake tourist destinations. In addition, several new 4- and 3-star facilities were opened in Italy's top four tourist destinations.
Main openings H2 2023
Até 2025
Supply will continue to grow in the coming years, with close to 130 projects expected to open by 2025, totalling 11,300 keys mostly 4- and 5-star hotels (30% and 33%, respectively) in the metropolitan areas of Lisbon and Porto.
+51
Hotels opened in 2022
+2,910
New Keys
Rome, the Eternal City, is a captivating destination that immerses visitors in a rich tapestry of history, art, and culture. From the awe-inspiring Colosseum to the iconic Trevi Fountain, Rome's iconic landmarks offer a glimpse into the city's grand past.
37M
XX million
77%
€243
So far in 2023 the city has seen 10 new openings in the 4 and 5 star category, for a total of 1,315 rooms; a further 3 openings are expected by year end with an additional 256 rooms. The estimated pipeline for the next two years, totals 8 new openings (rebranding and conversions) for a total of 1,005 rooms.
FIUMICINO AIRPORT
CIAMPINO AIRPORT
OCCUPANCY RATES
TOURIST ARRIVALS
(XXX% vs 2021; XX% vs 2019)
(+3% on Q3 2022)
(+19% on Q3 2022)
PASSENGERS
(+39% on 2021)
4M
Source: ISTAT (last available data 2022), Assaeroporti, Oxford Economics and C&W estimates based on STR data
In touristic establishments
8
9
In hotel establishments
10
11
Source: Study of the Economic Impact of Cruise Activity in Lisbon, promoted by the Administration of the Port of Lisbon in partnership with Lisbon Cruise Port and carried out by Netsonda and Nova SBE.
AIRPORT CIAMPINO
RevPAR
1,333
HOTELS
61,446
KEYS
124,473
BEDS
€315
(+15% on Q3 2022)
DOMESTIC OVERNIGHT
13.3M*
(+10 on 2022)
19.6M*
(-2% on 2022)
* Estimated data
Milan, the fashion capital of Italy, seamlessly blends a rich history with a cutting-edge modern spirit. From the grandeur of the Duomo to the innovative architecture of Porta Nuova, the city offers a captivating mix of old and new.
24M
€260
70%
€182
Since the beginning of 2023 ther have bee 5 new openings in the 4 and 5 star category, for a total of 307 rooms; a further 6 openings are expected by year end with an additional 515 rooms. The estimated pipeline for the next two years, totals 8 new openings (rebranding and conversions) for a total of 1,005 rooms.
MALPENSA AIRPORT
LINATE AIRPORT
(+4% on Q3 2022)
(+7% on Q3 2022)
(+23% on 2022)
9M
Source: ISTAT (last available data 2022), Assaeroporti, Oxfrd Economics and C&W estimates based on STR data. * Estimated data
12
13
14
Fonte: Estudo de Impacto Económico da Atividade de Cruzeiros em Lisboa, promovido pela Administração do Porto de Lisboa em parceria com a Lisbon Cruise Port e realizado pela Netsonda e Nova SBE
LINATE* AIRPORT
ORIO AL SERIO AIRPORT
15M
(+22% on 2022)
495
29,201
55,130
AIRPORT
ORIO AL SERIO ARIPORT
REV PAR
6.5M*
8.4M*
(+7% on 2022)
DOMESTIC OVERNIGTH STAYS
Florence, the cradle of the Renaissance, is a treasure trove of artistic masterpieces, architectural marvels, and historical landmarks, an enchanting destination for art enthusiasts and history buffs alike.
3M
€345
€266
Florence
AVERAGE ADRR
FLORENCE AIRPORT
(+12% on Q3 2022)
(+1% on Q3 2022)
(+14% on Q3 2022)
(+38% on 2022)
Source: ISTAT (last available data 2022), Assaeroporti, Oxford Economics and C&W estimates based on STR data. * Estimated data
(+122 on 2022)
353
13,866
30,681
3.9M*
9M*
(+16% on 2022)
Venice, a floating city of canals and bridges, casts a spell on visitors with its enchanting beauty and unique ambiance. The city's allure extends to its rich cultural scene, highlighted by the annual Venice Film Festival.
11M
€370
75%
€278
Venice
VENICE AIRPORT
(+5% on Q3 2022)
(+8% on Q3 2022)
457
16,988
32,655
10.4M*
(+11% on 2022)
27.6M*
(+6% on 2022)
NEW INVESTMENT MODELS
UNLOCK OPPORTUNITIES
NEW DESTINATIONS GROWING
CONSOLIDATING LUXURY
Leisure and lifestyle at an advantage
Investors are attracted by the flexibility of hotels to enhance income in a higher inflation environment, coupled with the long-term prospects of capitalising on structural shifts. New vertically integrated investment platforms (e.g. Investors & Operators or Investors & Asset Managers) are becoming increasingly popular due to their greater flexibility and convenience. We will see increasing negotiations comprising this conversations.
Leisure has been the primary leader of the recovery and investors will continue to hunt for opportunities in this sector, especially with a value-add angle. Leisure and business travel is increasingly blurred, driven by remote working and gig-economy. Hotels are adapting to this trend but adding facilities to enable work while staying in resorts or introducing leisure facilities in business hotels in urban centers to foster extensions of business-trips over the weekend. Opportunities exist for the conversion of non-performing buildings such as dated office buildings in major cities. Several hotel groups already have brands suitable for this development model.
Travel demand is growing rapidly in primary and second-tier urban markets with strong cultural offerings, allowing for longer season and more balanced mix of source markets. This is likely to attract investors who want to benefit from the long-term growth of leisure travel but also want to avoid the challenges with seasonality and the complex operation of resorts.
Luxury hotels have proven to be an effective hedge against inflation and economic downturns with the additional benefit of owning a distinctive physical asset. For the next year and beyond “experiential luxury”, such as travel and hospitality, is expected to grow at a faster rate than luxury goods. Major international investors are deploying significant funds to capitalize on this trend, acquiring high-end hotels in resort or urban areas, with objective to build distinct luxury portfolios.
Investors will continue to invest in the strong recovery and prospects for continued growth in the leisure and lifestyle segment. Several funds were capitalised during 2022 with a view to source investment in leisure products during 2023 and beyond. Demand for investment opportunities will shift from resorts to urban lifestyle projects in popular and safe destinations, in key southern European geographies, including Portugal.
Freehold
Milan & Rome
In the first half of the year, in Italy, has registered a decrease of 16% of transactions vs the same period of the previous year. Estimate for the year end confrms the contraction in the range of 20% with number of residential transacitions that could stand around 650,000. Market activity has decreased also in the major Italian city, mainly as a result of the rising residential values and higher interest rates, however is still higher than the 10-year average (+30%). Milan and Rome remain the cities with the higher number of transactions in Italy, which accounted for about 10% of the overall residential sales (H1 2023). Rome is the city with the highest number of transactions but Milan remains the most active and attractive residential markets, characterized by high level of demand and by vivacious demographic, student and job market trends. The Freehold market, in Milan, has recorded a decrease in terms of number of transaction, – 20% vs H1 2022, on the other hand the avarage price, for the dwellings in good and excellent, has registred an increase of + 4% vs the previous semester. The most transacted average size of apartment is confirmed to be between 50 and 85 square meters, all other indicators such as sale time and discount are in line with H1 2022. Rome remains the main market in Italy in terms of number of transactions, although in H1 2023 it recorded a decrease of transaction of -16.5% vs. H1 2022. The average sales prices is in line with previous semester. The most transacted average size of apartment id is confirmed to be between 50 and 85 square meters. There is a slight increase in the sale time to 6 months vs. 5 months in the H1 2022 and even the discount registers an increase reaching the 7%.
TRANSACTIONS
AVERAGE PRICE
DISCOUNT
SALE TIME
VOLUME 2022
Milan €350,000 (+6% vs 2021)
Milan 50-85 sqm (44%) Rome 50-85 sqm (42%)
Milan 3.7 vs 3.8 (H1 2022) Rome 6 vs 5 (H1 2022)
* Source: OMI (Agenzia delle Entrate - data 2022), Rapporto Imobiliare Agenzia delle Entrate, Nomisma. * Note: source - C&W relaboration on Agenzia delle Entrate data excluding Porta Nuova and City Life. Data refers to dwellings in good and excellent conditions
(+51% os 2021)
(+42% on 2021)
(+% on 2021)
(+63% on 2021)
N° TRANSACTIONS H1 2023
AVERAGE PRICE*
Milan €10M (+13% vs 2021)
Milan €4,470/sqm (+4% vs H2 2022) Rome €2,820/sqm (+0,2% vs H2 2022)
AVERAGE UNIT VALUE 2022
DISCOUNT H1 2023
Milan 3.7% vs 4% (H1 2022) Rome 7% vs 6.2% (H1 2022)
Rome €10M (+2.9% VS 2021
Milan 12,488 (-20% vs H1 2022) Rome 17,418 (-16.5% vs H1 2022)
Rome €225,100 (-0.20% vs 2021)
SIZE CLASS H1 2023
SALE TIME H1 2023
Leasehold
AVERAGE TIME TO LET
AVERAGE RENT
Milan €350,000 Rome €255,100
Milan 67.6 vs 68.2 sqm in 2021 Rome 79.7 vs 79.4 sqm in 2021
AVERAGE TIME TO LET H1 2023 (months)
Milan € 241,900 Rome € 194,400
** Source: OMI (Agenzia delle Entrate - data 2022), Rapporto Imobiliare Agenzia delle Entrate, Nomisma. * Note: source - C&W relaboration on Agenzia delle Entrate data. excluding Porta Nuova (368 €/sqm/yr) excluding City Life 407€/sqm/yr) Data refers to dwellings in good and excellent conditions
Milan 2 vs 1.9 (H1 2022) Rome 2.8 vs 2.9 (H1 2022)
Milan 51,821 (-7.2% VS 2021) Rome 55,557 (-3,2% VS 2021)
NUMBER
Milan 163 €/sqm/yr (+10.13% vs H1 2022) Rome 129 €/sqm/yr (+3.8% vs H1 2022)
AVERAGE UNIT VALUE
AVERAGE DISCOUNT
Milan 3.9% Rome 5.6%
In 2022, nearly 1.6 million of new lease contracts were registered in Italy (-1.6% over 2021). The contracts involved approx. 2 million properties. Milan market in the H1 2023 recorded, for the dwellings in good and excellent conditions, an increasing of rent + 10% vs h1 2022. The number of new contract register in 2022 a decerse of 7.2% vs 2021. Moreover, the letting time in the H1 2023 remain in line with the previous semester. The average leased area is currently slightly below 68 sqm. Rome market in the H1 2023 recorded for the dwellings in good and excellent conditions an increasing of rent of c. + 4% vs H1 2022. The number of new contract register in 2022 a decrease of 3.2% vs 2021. Moreover, the letting time in the H1 2023 remain in line with the previous semester. The average leased is currently slightly below 80 sqm.
TRANSACTIONS 2022
AVEAGE SIZE 2022
AVERAGE RENT H1 2023*
TRANSACTION VOUME
NUMBER OF TRANSACTIONS
AVERAGE UNITS VALUE
NEW
€10,008 million
(+15%)
TOTAL
11,060
(+1%)
€350,00
(-1%)
4,220 sq.m
80,4sq.m
-7%
3,6%
6 months
KEY DATA 2022
80,4 sq.m
(+3%)
6,030
3,6 months
3,120 sq.m
(+9%)
3,9%
-6%
€ 241,90
8 months
AVERAGE TIME
AVERAGE LOAN
PORTO
15
New and used
Source: SIR / Confidencial Imobiliário (SIR Ci)
Transactions are still growing +3.05% on 2021. 50-85 sqm band size results the most transacted, with c. 42% on total transactions Quicker sale time than 2021 with an average selling price that has remained constant
* Source: C&W relaboration on Agenzia delle Entrate data Data refers to dwellings in normal conditions Source: OMI (Agenzia delle Entrate), Rapporto Imobiliare Agenzia delle Entrate, Nomisma
TRANSACTION NUMBER
28,595
4,236 €/sq,m
AVERAGE SALE TIME
€241,900
€10,219M
€255,100
93.1sq.m
5.6%
Transactions are still growing +3.05% on 2021 50-85 sqm band size results the most transacted, with c. 42% on total transactions Quicker sale time than 2021 with an average selling price that has remained constant
40,064
2,799 €/sq.m
4.75 months
€194,400
VOLUME OF TRANSACOTIONS
152 €/sq.m
67.65 sq.m
1.6 months
Increasing number of new contracts and growing rental levels (c. +19% since 2016) 68% is represented by Ordinary long-term contract. Decreasing of time to let 1,6 months and increasing Average Rent The Average leased Area is slightly decreasing since 2016. In 2022 it is about 68 sqm.
125 €/sq.m
79.7 sq.m
2.65 months
Growth in number of new contract after covid emergency (2020). + 6.84% 58% is represented by Rent with Incentives. Decreasing of time to let 2.65 months and increasing Average Rent. The Average leased Area is slightly decreasing since 2016. In 2022 it is about 80 sqm
55,557
STUDENT ACCOMODATION
ca. 109,680
MARKET FUNDAMENT ITALY
-0.9%
STUDENT REGISTERED
(ETPs)
>500
First mover market activity primarily focused on development transactions. A diverse educational offer across some of the oldest universities in the world Lack of fit for purpose and modern purpose built accommodation. Most of the student accommodation are managed by Public entity
Source: MIUR accademic year 2021/2022
FULLTIME STUDENTS
ca. 1.8 Mln
INTERNATIONAL STUDENTS
Why invest in Italy?
STUDY IN MILAN & ROME
27.5%
35%
Italy Student Numbers and Yearly Change
Student by CIty 2021/2022
(2020/2021)
FOREIGN
+7.2%
STUDENT ACCOMMODATION
Potential demand
Milan is the leading student market, with the higher provision rates of the sample, as private investors see it as a gateway city to access the sector in Italy. Nevertheless, Milan provision rate is very low considering continental standards as Milan confirmed to be the preferred destination in Italy for international students.
Sources: Miur (Ministero dell’istruzione) and C&W data
Amostra não aleatória da procura de retalho agregada pela Cushman & Wakefield baseada em fontes públicas e trabalho de campo direcionado
According to the Bank of Portugal, mortgages were granted to the total amount of €16.2 billion, the highest in the last 15 years.
16
Percentage values correspond to the variation between 2022 compared to 2021
Potential demand missmatch
Operating beds
Pipeline 2024 - 2027
+ circa 10,850
NEW BEDS
TOTAL STUDENTS
211,754
69,066
DOMESTIC STUDENT FROM OUTSIDE REGION
20,325
Milan university demand
circa 13,600
Potential demand of beds
circa 67,500
Rome sees the highest demand mainly due to a huge number of students coming from other Italian regions. Despite this,the Eternal city has the lowest provision rate and, consequently, needs a huge number of beds.
*not considering students of onlie universities
Pipeline 2023 - 2027
+ 1,000
194,651 (*)
42,738
14,749
Rome university demand
6,160
circa 6,100
circa 50,400
Sales price of apartments
In 2022, the average sales price (new and used), in Lisbon, stabilised at €4,220/sq.m, and at €6,260/sq.m for new apartments. The Traditional Zone and Historical Centre commanded the highest sales prices, standing at €5,260/sq.m and €5,220/sq.m, respectively. The average discount and adjustment rate remained at 7%; with the average take-up time decreasing slightly to 6 months. The difference between the final sales price and the initial price offered for the property. In terms of future supply, Lisbon recorded a sizable decline in the licensing of residential projects, namely 15% of both licensed and submitted projects.
Source: Cushman & Wakefield; SIR Ci
Price of apartments
17
The difference between the final sales price and the initial price offered for the property
18
In Porto, the sales prices of apartments increased by 9%, to €3,120/sq.m, and 3% for new apartments, to €3,910/sq.m. Foz and the Historic Centre were the most sought-after, with prices reaching €3,830/sq.m in both. The average discount and adjustment rate adjusted downwards to 6%; and like the capital, the average take-up time decreased by 1 month to 8 months. Future supply seems to stagnate in the volume of projects licensed and a 21% drop in projects submitted for licensing.
19
Lease of
apartments
NR. LEASED UNITS
AVERAGE ABSORPTION TIME
AVERAGE MONTHLY CONTRACTED RENT
AVERAGE DISCOUNT AND ADJUSTMENT RATE
170
(-18%)
3,050
(-20%)
€21.4/sq.m
(+30%)
€15.8/sq.m
(+22%)
-3%
3 months
LISBON
70
(-38%)
450
(-27%)
€15.1/sq.m
(+16%)
€12.5/sqm
(+20%)
-1%
Source: SIR Ci
Given the shortage of supply in Lisbon and Porto and with more stringent finance terms for mortgages, the appeal of the private rented sector (PRS) continues to grow, as well as the intention of developers to develop new built-to-rent (BTR) projects. Even so, there is still an enormous scarcity of supply, which worsened in 2022, with a decrease in the supply of housing for rent above 40% in both cities, potentially due to the revival in tourism (and the conversion of residential units to short-stay rentals), and the consequent reduction in the number of apartments leased, as well as an increase in average rents.
Rental
Em estabelecimentos de alojamento turístico
Em estabelecimentos hoteleiros
Rents in Lisbon reached €15.8/sq.m, for apartments (+22%), and €21.4/sq.m for new properties (+30%); with the Historic Centre continuing to take the lead, with a year-on-year growth of 31%. In Porto, the average rental price increased by 20%, standing at €12.5/sq.m/month, with new apartments reaching €15.1/sq.m/month (+16%). Like Lisbon, the same area remained popular, with Foz commanding the highest prices. The discount and adjustment rates also reflected the mismatch between demand and supply, adjusting between 3 to 6 p.p.; with the take-up time mostly falling by 1 month.
Market
Rental price of apartments
20
Like in recent years, and as a result of the continuous imbalance between demand and supply, student accommodation and CoLiving benefitted from significant development activity in 2022, with 2,170 new beds, spread over 7 units, all privately run. The LIV Student Campus Street in Asprela, with 775 beds, is now the largest accommodation in the country. The ratio of number of beds per student has slightly increased to 13%, as did the predominance of private operators, who now represent more than a third of the supply.
24,700
36%
Student Accomodation
/ CoLiving
TOTAL SUPPLY (nr. beds)
PrivaTE OperaTors
PROVISION RATE
(+10%)
(+1 p.p.)
21
Ratio between number of beds and displaced national and international students
22
Next 3 years
Continuous increasing demand, particularly for purpose-built accommodation, continues to attract the private sector and encourage public investment, with the supply forecast for the next 3 years standing at 8,800 beds. Noteworthy future private supply includes the Coletivo de Azúrem, a project in Guimarães, with 630 beds, the expansion of Xior, with two U.Hub projects, and the entry into the market of The Social Hub (formerly The Student Hotel), with projects in Carcavelos (Lisbon) and in Bonjardim (Porto).
Main openings
Main private pipeline
In the senior housing sector, the number of available beds is rising, currently standing at 103,400. Even so, the ageing of the population contributed to the fact that the equipment ratio has not improved, remaining at 14%. Under these circumstances, complemented by a high occupancy rate and scarcity of quality supply, there is increased activity by the private sector, particularly with the entry in the market, in recent years, of specialist international companies, such as the ORPEA group, which in 2022 opened a 100 beds unit in Braga. Looking ahead, for the next three years, an increase of 800 beds is projected from among the main private operators, with most choosing to develop projects of more than 100 beds, like DomusVi that will open 3 residences (in Leiria, Oeiras and Estrela).
103,400
92%
26%
Senior
Living
(+2 p.p.)
Source: GEP; INE; ACSS
23
Ratio between the number of beds and population aged 80 and over; 2021 population
14%
(=)
EQUIPMENT RATE
Source: Office for Strategy and Planning – Social Charter (excludes Madeira and Azores)
Supply
Main Private Operators Pipeline
Main Private Operators Openings
24
HIGH PREMIUM VALUE FOR NEW PRODUCTS
the italian STUDENT ACCOMMODATION UNDERSIZE RELATED TO POTENTIAL DEMAND
THE "S" OF ESG TAKING THE STAGE
Although the number of transactions has slowed down, both sale and especially rental values of new products continue to increase in Milan and in Rome the largest markets for the residential sector in Italy, boosting the gap between value of old and new stock; moreover the aging residential stock is an attractive opportunity for investors to develop new products in line with evolving housing needs.
The new European green house directive, which aims to move the European Union towards a climate-neutral building stock by 2050, setting targets and measures to improve the energy efficiency of buildings and reduce carbon emissions, this represents a big challenge for Italy, which has a vast stock of historic and old buildings and an opportunity for investors.
Italy present a provisional rate on the demand pool of c.11%, being one of the lowest in Europe, showing a shortage of beds in student accommodation compared to potential demand. This shortage makes the development of new student accommodation necessary to meet the high demand.
The living sector, more than other sectors, has a pivotal role in tackling social factors it also plays a central role in addressing many of society's major urban challenges in the years to come. The #11 SDG’s is about building Sustainable and Inclusive Cities: real estate capital could support and contribute to achieve this goal. Some of the patient capital is targeting the sector and the relatively more favorable outlook for capital markets we anticipate in 2024 should further help funding these type of new social and affordable projects.
STRONG FOCUS ON SUSTAINABILITY
THE ITALIAN STUDENT ACCOMMODATION MARKET APPEARS UNDERSIZED RELATED TO POTENTIAL DEMAND
DEVELOPMENT
Development &
Purchase of buildings for refurbishment or land for development
Main urban development and regeneration deals
25
Activity in the urban development and regeneration sector picked up in 2022 growing by 48%, compared with 2021, with a total transaction volume of €786 million, spread over 55 deals. Amongst these, the development sites included in the Crow project (among other, Vale do Lobo), sold at the end of last year by ECS Capital to DK, for an estimated price of €200-250 million; and the purchase by AXA IM - Real Assets of Colombo Tower 3, for €40-45 million, stand out.
26
Information based on internal and public sources
PROMOÇÃO
Aquisições de edifícios para reabilitação ou terrenos para promoção
Real estate projects under licensing
Source: Pipeline Imobiliário Ci
Regarding future supply, during the last year 7.2 million sq.m were submitted for licensing in mainland Portugal, spread over more than 21,000 projects, reflecting increases of 11% and 21%, respectively, when compared with the same period of the previous year. In terms of area, although most of the projects are for residential use (73%) and new construction (78%), the office and tourism sectors benefitted equally from development and refurbishment projects, with each category accounting for around 50%.
Baseada em fontes internas e públicas
Real estate projects licensing
Licensing of construction projects in Lisbon followed an asymmetric pattern, with a decrease related to projects submitted and an increase in those already licensed. Regarding the former, there was still an increase (+13%) in the number of projects submitted, to close to 310. Contrary to country-wide data, there was again a balance in terms of the type of construction, with works in existing buildings marginally dominant.
337,200 sq.m
(-25%)
997,300 sq.m
(+91%)
LICENSED
Submitted for licensing
Licensed real estate projects
Próximos 3 anos
The area of licensed projects doubled, with the retail sector taking the lead, with 449 thousand sq.m, swayed by the permitting for the refurbishment and expansion of Centro Colombo. Construction costs continued to escalate, with average costs in Lisbon ranging from €1,450/sq.m to over €1,850/sq.m, in new construction, and from €1,700/sq.m to over €2,000/sq.m in refurbishment.
Construction costs by segment
Porto also showed an unlikely trend concerning the area of construction submitted for licencing and the licensed area. The former decreased by 28%, with the number of projects decreasing by 10%, to around 275. In Porto, new construction prevails, representing 72% of the total area.
214,500 sq.m
(-28%)
353,400 sq.m
(+6%)
LICENseD
Regarding new licensed area, the residential sector is the most popular, with a balance between new development and refurbishment. Additionally, in Porto, construction costs continued their upward trend, ranging from €1,400/sq.m to over €1,800/sq.m in new construction and from €1,500/sq.m to over €1,900/sq.m in refurbishment projects.
Trends
Residential development will continue to be a priority
Pressure on construction costs may be easing
The significant imbalance between demand and supply, especially in the mid-end segment, will continue to drive developers and investors to adopt innovative solutions to develop more homes for the middle class. The recent measures announced by the government to create more residential accommodation, do not include tax benefits for new construction nor the optimisation of licensing time for allotments, so several larger-scale residential projects are likely to continue to be delayed. Portugal is currently a very popular destination, so investment in residential projects for the high-end and luxury segments, fuelled by growing demand from international buyers, is likely to continue.
The need to develop more practical, modern and, above all, environmentally and energy-efficient offices will become increasingly evident, freeing up more buildings for conversion into housing or tourism in central locations, fostering a new cycle of urban regeneration in the cities of Lisbon and Porto.
A slight slowdown in the rising costs of construction materials and labour costs can already be observed, which may continue provided there is no global catastrophe, favouring the development of projects targeted at the mid-end housing segment.
The emergence of a new generation of offices
CAPITAL MARKETS
Commercial Real Estate
Investment
After a weaker first part of the year, CRE investment volumes surged by +77% in the second semester compared to the first semester, reaching 4€Bn. This was supported by a return in activity in the last quarter of the year, aligned with the same period last year. It marked a positive move since the end of last year, following a return of confidence among investors since last December. CRE investment market in 2023 reached 6.3€Bn (- 46% YY), with Hospitality and Logistics the best performing asset classes. Office, which is facing a challenging outlook more than other asset classes, experienced a recovery in the last quarter bringing its share on the yearly total at 18%. Since the start of the year, when domestic capital was dominant, the share of foreign investors has grown, with FY accounting 60% of the total volume.
TOTAL VOLUME
Foreign Investment
LOGISTICS
€6.3Bn
(-46%YY) 2023 TOTAL VOLUME
60%
27%
27
Institutional investment in completed and income-producing real estate properties
FOREIGN INVESTMENT
LOGISTICS Best performing sector
Investment by Semester
28
In case of a range in the “Value (M€)” column, the calculation of this indicator is based on the range’s average value
Investment by Sector
29
Industrial & Logistics sector has maintained its supremacy on the market: 27% of the FY investment volume. The fastest repricing compared to other asset classes favored the greater liquidity in this sector:+ 50 bps since the beginning of the year in prime yields. Two big portfolios, over 150€Mn each, lead the activity, accounting for 20% of the annual sector volume. The office sector recovered towards the end of the year, particularly in the last quarter. This positive result was mainly driven by a single transaction in the CBD in Milan, which accounted for 34% of the quarterly volume (624€Mn ). The volume for the financial year stood at EUR 1.1 billion, which was a sharp decrease compared to 2022. Retail volumes remained modest at some 650€Mn, broadly in line with 2022, representing some 11% of total CRE investments recorded for 2023. Demand is confirmed focused on out of town retail namely retail warehouses portfolios and secondary retail galleries. Buyers are mainly international speculative investors or domestic investors often owner occupiers of the close-by food anchor unit. The worsening of the financial environment and limited investment activity recorded in 2023 suggested an increase of the benchmark of prime returns for retail investments by some 25-50 bps.
Mouse hover to see the notes
2023
2022
Main investment deals
Commercial real estate component
Within the alternative asset classes, the Hospitality was the second best performer, with 1.4€Bn invested over the year and recording the largest transaction in 2023 all sectors: Six Sense in Rome for circa 250€Mn. It highlights the momentum for this asset witnessing how investors are betting on the potential that tourism industry in Italy presents, mainly in the consolidated luxury segment. Living Investment volumes remained subdued at ca. 600€Mn despite value-add investors are still keen to invest in developing the sector in Italy, mostly in established locations, backed by the strong unbalance between demand and supply. It’s worth mentioning the completion of the first sage acquisition of PRIMONIAL REIM of Icade's stake in ICADE SANTÉ, comprising the Italian Portfolio of almost 30 nursing homes thus consolidating its positioning as one of the top player in Europe in the healthcare sector.
30
32
33
Nr. of keys of the transacted hotels (circa 85% of the commercial real estate component, as it excludes the golf courses)
Unit value by keys (€/keys)
Unit value by keys (€/beds)
Prime yields move out further for all asset classes: - Offices showed a further +25bps during H2 reaching 4.25% in Milan and 4.75% in Rome; - Retail High Streets following a +50bps in H1, country prime, remained at 4.00% in the second part of the year; - Shopping Centers prime yields stood at 6.75% (+25 bps on H1); - Retail Parks stable at 7.00%; - Logistics reached 5.50% a +50bps increase on H1; - Hospitality increased by 50bps during H2.
Investimento institucional em produto imobiliário acabado e de rendimento
Prime
Yields
OUTLOOK Repricing started in Q4 2022 continued in H1 and will likely continue until the end of the year with further interest rates hikes expected.
INTEREST RATES HAVE PEAKED
DEMAND-SUPPLY MISMATCH NARROWING
ASSET OPTIMIZATION
As inflation in the short term adheres to the projected path, we are expecting ECB to maintain its current stance, at least until H2 2024, with no further increase in interest rates. However, it will continue to maintain a vigilant oversight of underlying inflationary forces as well as other macro issues that could potentially disrupt the economy over 2024. The new “interest rate certainty” is leading investors to price debt and equity with higher confidence to get deals moving. The greater consensus that the worst is behind lead us believe that 2024 has began with a better mood than 2023, a cautious optimism, always with an eye on the many macro headwinds.
With interest rate raise came to a halt, according to a wider consensus among real estate players, we believe that we’ll see some signs of recovery starting in 2024 with increasing activity in the second part of the year. Yields across all sectors are expected to expand only slightly throughout the year and with the usual difference among sectors. Repricing occurred over 2023 has been meaningful and there’s more awareness among investors that the market environment will be different from the past, yields will be higher than in the zero-rate environment..
2024 will offer new opportunities for strong capitalized investors who could acquire assets and developments at better prices. Further, private investors, less reliant on finance and able to act more nimbly than institutions, can move fast and act using a bit of instinct, taking the chance to have less competition in acquiring the best asset. It will be the year for value-add investors to acquire underpriced projects, with the gap between opportunistic buyers and underfunded sellers narrowing to bring more liquidity into the market as the year goes on. Projects with stable performance and financial issues in attractive sectors (living, data centers, logistics, hospitality) will have more support from their lenders, who have lower leverage this time and are more open to work with seasoned sponsors.
2024 will mark the comeback of asset-based strategies over financial ones. Expertise will generate returns for those who can manage the assets well. It will be the year for Retail and Office optimization through a new creative and innovative asset management. More than in any other year, the quality of the asset is the crucial factor in 2024. The two-speed market in “future-proof” buildings versus the rest will accelerate. The scarce supply of sustainable buildings for occupiers means the creation of best quality accommodation might be where the extra returns are achievable.
PROPERTY PRICE WILL SOON HIT THE BOTTOM
Sector Outlook 2024
OFFICE
Office sector will maintain a good, selective, attractiveness. The availability and cost of money will continue to affect the investment market in the first part of 2024. On the other side the more promising announcements about rate cuts will generate a more positive sentiment the impact of which is expected to be seen in the latter part of the year. The investors’ market approach will remain extremely selective focused on well located CORE+ / Value add opportunities. Assets in central submarkets and green conversions / improvements will remain the main investment’s drivers during this year.
Interest in logistics investments remain on the agenda of most investors across the entire spectrum of logistic sub – asset classes. We are expecting the level of capital deployment will continue to be high across all risk profiles. In particular the investors’ focus will be addressed to: Standard low – customized logistic assets; Core + logistic platform (to be enhanced through asset management activities and with the possibility of increasing rents); Value add in prime location; Last Mile on the fringes of major cities (Milan and Rome) also with assets to be re-developed; Core at the right pricing level and land to be developed in consolidated location.
A recovery for investment activity is envisaged for 2024 thanks to the mix of good fundamentals (increased turnovers, sustainable rents, limited vacancy) and already adjusted high returns together with the expectations of reductions in financial rates. Regional Centres, dominant in locations with a solid catchment, on the market at an adjusted yield and Centres to be repositioned opportunistically and/or value add will be the main Investors’ target. High-street mass-market retail opportunities will maintain and increase attractiveness at the right level of price / yield while any rare luxury prime opportunity will continue to trade at prime yields.
The living sector will continue to be an asset class of growing interest for institutional investors, with a focus on residential development. Value-added investors show a preference for BTS projects in central areas, while BTR expansion is observed in peripheral locations and major regeneration projects. Student accommodation will continue to be on the agenda of investors who will also extend their interest to secondary cities.
Commercial real estate certified buildings
The Portuguese real estate market continues to see growing interest to incorporate sustainability concept, as well as ESG criteria, in decision-making processes. In light of the increased regulation at European level, with the implementation of relevant policies and strategies, obtaining certificates such as Building Research Establishment Environmental Assessment Method (BREEAM), Leadership in Energy and Environmental Design (LEED) and WELL certification, in addition to the application of taxonomy to properties to classify their sustainability, is rapidly taking precedence.
Source: BREEAM and LEED
Portugal currently has several buildings in the commercial real estate market in different phases of certification (from design to operation). There has been a marked rise, over the last three years, of buildings awarded sustainable building certificates, for new construction / refurbishment and buildings in use.
34
New certification or renewal; only includes the projects listed by the respective entities (some projects are anonymous and therefore not published)
BREEAM has taken the lead, with close to 80 certified buildings, 90% of which are related to in use and more than half are in the retail sector. More than 30 buildings have LEED certification, and this is equally distributed between new construction / refurbishment and in use, mainly in the office sector. In terms of future certification, data of which is only available for LEED, currently almost 50 buildings are registered.
The WELL certification is focused on the use of the building and the well-being of its users. Although the implementation of this rating begins in the construction phase, it is only obtained in the operation phase, and there are yet no buildings with this certification. Even so, with nearly 40 projects registered, all in the office sector, it is expected that this situation will change shortly.
35
ITALY MARKET OVERVIEW TREND & OUTLOOK 2023/24
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. To learn more, visit www.cushmanwakefield.com © 2024 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
RAFFAELLA PINTO Head of Business Development raffaella.pinto@cushwake.com ANNA STRAZZA Associate, Research Italy anna.strazza@cushwake.com GWENDOLYN FAIS Consultant, Research Italy gwendolyn.fais@cushwake.com
INVESTMENT David Lopes david.lopes@cushwake.com BUSINESS SPACE & RETAIL INVESTMENT David Lopes david.lopes@cushwake.com ESG Ana Luísa Cabrita analuisa.cabrita@cushwake.com ASSET SERVICES Bruno Silva bruno.silva@cushwake.com RETAIL ASSET SERVICES André Navarro andre.navarro@cushwake.com PROJECT MANAGEMENT Carlos Pueyo carlos.pueyo@cushwake.com VALUATION & ADVISORY Ricardo Reis ricardo.reis@cushwake.com BUSINESS DEVELOPMENT Isabel Correia isabel.correia@cushwake.com
FRANCESCA NEGRONI Bid Management and Retail Research, Italy francesca.negroni@cushwake.com NICOLAS VIVIANI Data Analyst Research Italy nicolas.viviani@cushwake.com CARLA NASINI Marketing Executive, Italy carla.nasini@cushwake.com
Graphic & design by Carla Nasini
