Overview
The easing of Covid-19 restrictions and successful vaccine rollout within Italy has resulted in a positive outlook for the second half of 2021. The Italian GDP experienced an expected annual growth of 6.3%, driven by the increase in investments and household expenditure.
The residential market recorded €90bn in total sales volume, with government incentives pushing the post-pandemic residential recovery. The office sector still reacted positively during 2021, with Milan proving to be the most popular location, representing 75% (€2.1bn) of the volume invested in the office sector in 2021 despite the changes in working patterns after the pandemic.
Regarding the Italian real estate market, the impact on the different real estate sectors was very diversified: while hospitality set negative records with unprecedented drops in touristic arrivals and room occupancy, the residential sector held on, performing better than expected in terms of transactions; the logistic segment is the one who looks better, with a growing trend that strengthened even further in 2020 and 2021.
The Italian retail market has been positively affected by the vaccination rollout also, experiencing stable and positive growth rates and a total investment volume of €1.4bn in 2021. Logistics set a new Italian record in 2021, with €2.7bn invested in the sector in 2021. The surge in e-commerce due to Covid-19 restrictions encouraged this growth, an 83% increase from 2020.
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