Italian commercial realty investment going strong

Investment in Italy’s commercial real estate markets is going from strength to strength with the first half of 2016 seeing over €3.4 billion of sales, up 35 per cent on the same period last year. The latest investment analysis report from international real estate advisor Savills says that favourable market conditions are fuelling supply in the Italian market through fund liquidations or equity fund investors who are taking advantage of the point in the market’s cycle to dispose of some of the most liquid assets in their portfolios. It says that it is significant that cross border investment into Italy accounted for more than half of the total investment volume in the first six months of 2016, and close to 65 per cent of all deals. Savills has recorded that international funds are increasingly dominating the market, with 80 per cent of foreign capital coming from Europe. ‘Our analysis suggests Italy is at an earlier stage in the cycle compared to Europe’s primary markets in France, Germany and the UK, therefore international investors are still identifying the potential for capital growth and better returns from core Italian product,’ said Eri Mitsosterigiou, director of research, Savills Europe.