16 February 2026
Real estate corporate investment in Italy 2025: the market returns to peak levels
Download reportGrowing capital flows, stronger investor confidence and the return of core asset classes
After the slowdown recorded in previous years, the Italian corporate real estate investment market has returned to robust growth. In 2025, total investment volumes reached approximately €12,3 billion, up 20% year-on-year, driven by renewed investor confidence and strong performances across the retail, industrial & logistics and hospitality sectors.
Patrigest’s latest report explores the key market dynamics reshaping the investment landscape while outlining the outlook for 2026.
A market that strengthens its recovery
The Italian corporate real estate investment market accelerated significantly throughout 2025, returning to its highest levels in recent years thanks to an improving macroeconomic environment and the gradual reduction in interest rates.
Retail, logistics, hospitality and office assets all contributed to market growth, while the continued presence of international capital further confirms Italy’s attractiveness among institutional investors.
Corporate real estate investment volumes have returned to their highest levels in recent years
Retail, logistics and hospitality lead market growth
The return of the most established asset classes defined the 2025 market. Retail delivered the strongest annual performance, attracting more than €3,3 billion in investments, supported by major transactions involving outlet centres, shopping malls and large-scale retail assets.
Industrial & logistics followed, driven by significant portfolio acquisitions along Northern Italy’s main logistics corridors. Hospitality recorded its best performance since 2019, fuelled by sustained demand for premium hotels and value-add repositioning opportunities.
Retail, logistics and hospitality are driving the renewed growth of real estate investment in Italy
Milan remains the market leader while living assets continue to expand
The office sector maintained investment volumes close to €2 billion, with Milan accounting for approximately 65% of total office investment thanks to major transactions involving prime assets and large-scale urban regeneration projects. At the same time, the living sector continued to evolve through growing demand for student housing, Build-to-Rent developments and residential conversion projects.
Healthcare also strengthened its position, reflecting investors’ increasing interest in sectors supported by resilient long-term fundamentals.
A more dynamic market looking ahead with confidence
The Italian corporate real estate investment market entered a new phase of expansion in 2025, supported by improving macroeconomic conditions, lower interest rates and renewed confidence among both domestic and international investors. Retail, industrial & logistics and hospitality emerged as the primary drivers of market growth, while the office sector remained a stable pillar thanks to Milan’s continued leadership and ongoing urban regeneration initiatives.
At the same time, emerging sectors such as living, student housing and healthcare are becoming increasingly important within institutional investment strategies, responding to long-term demographic trends and evolving market needs. International investors represented approximately 55% of total investment activity, further confirming the competitiveness of the Italian real estate market within the European landscape.
In this evolving environment, the ability to interpret market data quickly and identify the sectors offering the strongest growth potential is becoming a decisive competitive advantage for investors, developers and market participants. Looking ahead, the outlook for 2026 remains positive, with expectations of a further strengthening of the recovery supported by increasingly solid market fundamentals and growing confidence in the Italian real estate sector.