In the first half of the year, investment volumes reached €7.3 billion, up 37% YoY. Retail, logistics, hospitality and data centres are driving growth.
In the first half of 2026, the Italian real estate market recorded €7.3 billion in investment, setting a new half-year record and confirming the realignment phase that began in the second half of 2024.
The research was conducted by the Research & Data Intelligence department of Patrigest, Gabetti Group, and highlights broad-based growth across the main asset classes, alongside increasingly selective demand focused on assets with transformation, repositioning or development potential.
The macroeconomic environment remains characterised by critical variables: inflation at 3%, persistent geopolitical tensions and commodity price volatility. Against this backdrop, Italy stands out for its ability to attract capital thanks to the availability of convertible assets, supported by a large real estate stock with significant redevelopment and repositioning potential.
The growth in investment volumes confirms the market’s structural repositioning: investors are increasingly targeting assets with transformation potential, value-add strategies and digital infrastructure, strengthening Italy’s role as an attractive investment hub in Southern Europe thanks to the country’s significant redevelopment and repositioning potential.
H1 2026 investments
The first half of the year recorded 37% YoY growth, an annual increase that points to a broader, non-cyclical transformation.
The composition of investment volumes reflects a structural shift in demand: greater focus on asset classes where returns are driven by transformation, increased value-add activity and the consolidation of digital infrastructure as a new area of capital allocation.
Italy is emerging as one of the most attractive and sought-after markets in Southern Europe
Retail
Retail remains the leading asset class in the first half of the year, with €2.4 billion invested, up 116% YoY.
- shopping centres and retail parks, accounting for around 25% of the sector
- pan-European outlet transactions
- exceptionally large prime high street deals
The second quarter recorded the strongest quarterly performance ever, with more than €1.6 billion invested in the retail sector.
Industrial & Logistics
The segment reached €1.2 billion, up 48% YoY, with particularly strong activity in the second quarter.
- three transactions above €100 million involving logistics portfolios
- focus along the Milan-Bologna and Turin-Milan-Venice corridors
- recovery expected in the second half of the year, with demand once again concentrating on structured portfolios and large-scale transactions
The second quarter alone accounted for approximately €875 million, confirming logistics as one of the most dynamic asset classes of the first half of the year.
Hospitality
Investment reached €1.2 billion, down 10% YoY, while demand remains structurally solid.
- 85% of investment volume concentrated in 4 and 5-star assets
- significant share of non-operational assets targeted for conversion or development
- Milan (30%) and Rome (20%) remain the main investment hubs
- growing interest in emerging markets
Demand is concentrated in emerging markets with strong tourist appeal and a significant luxury component: the Sicilian coast, established destinations around Lake Como, and luxury Alpine locations in Trentino-Alto Adige and Valle d’Aosta, which continue to attract international operators, club deals and private investors.
Office
The office sector recorded €650 million in investment, down 29% YoY, with increasingly selective and polarised demand.
- Milan and Rome account for approximately 80% of investment volumes
- strong focus on trophy assets in CBDs
- increase in conversion projects towards hospitality and living
- significant share of private investors, including HNWIs and family offices
Several transactions in Milan involved the conversion of office assets into hospitality and living uses, confirming an increasingly structural trend.
Living
The living sector recorded €650 million in investment, up 89% YoY, across 25 transactions.
- build-to-sell: 39% of total investment
- student housing: 39%
- the majority of investment volumes concentrated in Milan and its metropolitan area
- increase in office-to-residential conversions and residential redevelopment projects
The segment is seeing growing interest in forward purchase transactions, particularly in student housing.
Investor selectivity is rewarding assets with transformation potential: the ability to identify the right repositioning strategy has become a decisive competitive factor
Healthcare
€200 million and growing institutionalisation
The healthcare and senior care sector is showing signs of increasing institutionalisation, with more than €200 million invested in the first six months of 2026, supported by structural demographic trends and growing interest from specialised international operators.
Alternative / Data Center
Alternative assets reached €750 million, with data centres emerging as the segment’s main area of expansion.
- strong concentration in Milan and Lombardy
- focus on the conversion of industrial assets and land for development
- more than 200 data centres in Italy, making it the third-largest hub in the EU
- Bari as the leading hub in Southern Italy
- regulatory uncertainty remains a key factor to monitor
The role of data centres confirms the growing relevance of emerging asset classes, driven by advances in AI and the increasing need for advanced digital infrastructure.
Key trends at a glance
The first half of the year highlights:
- international capital accounting for the majority of investment volumes (67%)
- growth of alternative asset classes
- continued consolidation of living and hospitality
- increasing selectivity in the office sector
- acceleration of value-add strategies and asset conversions
The Italian market reflects the trends observed during the first half of the year: demand is increasingly focused on asset transformation, redevelopment and repositioning, with growing interest in transactions capable of capturing emerging demand drivers.
The concentration of investment in key markets, together with the growing role of digital infrastructure and development-led strategies, confirms a market increasingly driven by equity strategies and value creation processes that reflect its structural evolution.
In summary
The first half of 2026 confirms the structural repositioning of the Italian real estate market: rising investment volumes, selective demand, a growing focus on assets with transformation potential and the consolidation of digital infrastructure.
A complex environment, yet one with solid fundamentals for investors pursuing technical and value-add strategies.
Italy’s real estate investment landscape is characterised by a large and highly transformable asset base, capable of supporting equity strategies and attracting capital focused on redevelopment and repositioning.
A changing market, a transforming asset base: download the full report to explore the complete analysis.