Reports & Studies

Investors who believe Italian retail property holds less risk than office or industrial real estate may be misguided and it may actually be more exposed to the country’s deteriorating economic outlook, says research consultancy Capital Economics.
Investors and lenders in Italy perceive retail to be safe, based upon the assumption that high levels of private wealth, especially in Milan, will support consumption and thus retail occupier demand. However, financial markets are no longer prepared to turn a blind eye to Italy’s huge debt burden and fragile fiscal positio... [MORE]

Italian pooled property funds continued to deliver stable returns in the first half of 2011, at 1.2%, according to the Italian Pooled Property Fund Indices (Italian PPFI).
Despite economic uncertainty affecting the country and the Euro-zone, returns fell only 20 basis points from the 1.4% delivered in December 2010. On an annual basis to June 2011, all pooled funds delivered 2.6%, the strongest return since the downturn began.
Specialist funds continue to outperform their balanced counterparts, a trend also seen in the UK and pan-European PPFIs. Specialist funds returned 1.4%... [MORE]

Good trends were registered in take-up during the 2nd quarter of the year. The total volume of take-up in Milan & Hinterland reached 70.000 sq m of office space, posting a y-o-y increase by 40% on the H1 2010 figures. Hinterland has hosted the major transaction of the quarter with the pre-letting by ALCATEL LUCENT of 33,000 sq m of office space to be delivered in 2012-2013. This deal has impacted the geographical split of the take up with now a more balanced  market between the Centre and the Hinterland. Demand increased slightly with some important... [MORE]

The tendency, of those who search for new spaces, is to move inside locations able to communicate a feeling of “happy living” for throughout the day. If is true that many people spend 8 hours and more between the four office’s walls, then is also correct offer them a pleasant and comfortable ambience, ables to mitigate daily stress caused by work activities. Therefore, inside the companies, green and relax areas are required, specifically designed to recharge workers and increase their productivity.
World Capital conduced an analysis considering six sample... [MORE]

The level of distressed properties coming to market is set to continue to rise globally in line with increasing investor demand, according to the Royal Institution of Chartered Surveyors (RICS). The latest RICS Global Distressed Property Monitor reveals that over half of the countries surveyed anticipate a rise in forced selling of commercial buildings for the coming quarter. Not surprisingly, the Republic of Ireland, Spain and Italy expect the highest number of foreclosures, while Brazil, Malaysia and Russia expect the lowest. Property professionals in Russia foresee a continued decline in the... [MORE]

Milan’sinvestment market in the first quarter of 2011 wase clipsed by the closingof the Rinascente deal that is going to become the most important deal of the year, in terms of invested volume, in the Italian real estate market.
Take-up volumes in Milan registered a good start to the year. However, GDP and employment growth forecasts for the next two years (around 1% for GDP in both 2011 and 2012 and -0.3% in 2011 and 0.6% in 2012 for employment) does not imply companies will take-up more space, but encourage them to carry on their cost reduction and office rati... [MORE]

For the third consecutive year, the first quarter investment volume in Rome was lower than €100m. It will be very important to analyse the market consequences of the new law on property funds, as 30% of investment involved Italian property funds during the last twelve months.
The occupier market was very dynamic thanks to the transaction of 30,000 m² by the Economy and Finance Ministry.

Report

The Consulting division of World Capital Srl, Real Estate company, announces the publication of the Real Estate Observatory of Logistics on the second half of 2010. Detected data confirm that the trend of price stabilization is always going. At the same time is interesting to observe a significant increase in the range of reported values. This data is very important because it confirm how the specialization of the logistics companies led to a request of properties with very specific characteristics.
Today the price is increasingly affected by not only property’s locati... [MORE]

- Economic growth still limited
- Investment continues to be concentrated on offices and retail property
- Focus on core investments in Milan continues
- Roman office investment market is stable
- Retail investments growing in 2010
- European investment volumes soared by 43%

Report

The Consulting division of World Capital S.r.l., Real Estate company, asked a sample of 20 logistics companies, including Saima Avandero SpA, Schenker Italiana SpA, Norbert Dentressangle Srl e Arcese Trasporti SpA, what they think about the actions expected in the National Logistics Plan’s draft.
In particular we considered the first eleven actions expected in the plan developed by Ministry of Infrastructure and Transport asking decision makers to tell us how these can be strategic for their business. We ask, where the action in question will implemented, to tell us a... [MORE]

Milan market showed a reverse trend compared to the national market as € 300 million were invested: the volume increased both compared to the previous quarter and to the same quarter of the previous year. The occupier market in Milan recorded in the third quarter of 2010 an increase on take up level with a volume of sqm transacted around 120,000. The vacancy rate has shown an increase if compared to the previous quarter reaching a level of 10.0%. Report... [MORE]

A regular report on the occupational real estate market with commentary, analysis and key data. Even if during the previous quarter take-up decreased 42% compared with Q3, annual take-up volume has definitely exceeded expectations, reaching about 300,000 sq m in the Milan and Hinterland market.
 

Report

The report provides key data on the last 10 years office developments in Milan market. This report provides also some analysis by submarket and size of building.

Report

(Retail and reserved)
Offices – blue 59%
Commercial – orange 21%
Development of areas – red 13%
Industrial logistics – yellow 6%
Residential/other – grey 1%

Source: Scenari Immobiliari 

Italian commercial property delivered modest capital depreciation over the first six months of 2010, at -0.3%, as measured by the IPD Italian Bi-Annual Property Index. The re-pricing in Italy’s commercial property markets since the global financial crisis struck has been mild, at just -5.3% over the last two and a half years. Across this period, rents have declined -1.7%, while initial yields have expanded by 30 basis points to 6.2%. For the full Index Statement,... [MORE]

About the situation of Rome in H1 2010.

Report

About the situation of Milan in H1 2010.

 Report

In its latest property market analysis, Henderson Global Investors examines the prospects for the Italian property market. Two decades of anemic economic growth, the absence of meaningful structural reforms and notorious dysfunctional politics do not help Italy’s reputation as an investment destination. Additionally, the global recession has earned Italy a membership in the infamous ‘Club Med’, alongside the struggling economies of Greece, Portugal and Spain.
With regard to the property market, the critical view on Italy from outside is completed with reference to... [MORE]

"Q2 investment turnover, reaching approximately €1,330 million, is roughly in line with the same quarter of the previous year and nearly double of the previous quiet quarter. Investor sentiment has clearly improved, with investment volumes rising, but attention is very much concentrated in the prime market. Many of the active investors would not consider secondary property, because it lies outside their investment subjects."

Click here for the Report

Milan: Slight increase in demand (clik here)

Rome: Increase in take-up (clik here)