Real estate investments in 2026: record-breaking first nine months for the Italian property market

The macroeconomic context and investment distribution

The outlook points to moderate economic growth, affected by geopolitical tensions and rising energy costs. Inflationary pressures and financing costs require investors to carefully assess the sustainability of transactions and expected returns.

Retail continues to lead in terms of investment volumes, followed by hospitality and industrial & logistics. At the same time, the growth of the living sector and alternative asset classes points to greater diversification of investment. The transformation of existing assets and their conversion to new uses continue to offer opportunities for both domestic and international capital.

Retail remains the leading asset class

With approximately €2.9 billion invested (+37% YoY), retail accounts for 29% of total investment and has already surpassed the full-year 2024 volume. Investor interest remains broad, spanning high street, shopping centres, retail parks and outlets.

The full report, available at the end of this article, provides a breakdown by region, the share of institutional investors and the period’s most significant transactions.

Logistics: the strongest growth among established sectors

Industrial & logistics reached approximately €1.9 billion (+53% YoY), driven by portfolio transactions and a particularly dynamic second quarter. Northern Italy remains the sector’s main hub.

The full report covers the most active logistics corridors, the breakdown by category and geographical area, and the role of institutional investors and asset management companies (SGRs).

Hospitality: nearly €2 billion, spanning major cities and tourist destinations

Hospitality investment is approaching €2 billion (+16% YoY), making it the second-largest asset class by investment volume. Demand spans both major urban markets and seaside and lakeside destinations, with specialised operators showing growing interest in the redevelopment and conversion of existing properties.

The full report covers the share of major cities, seaside and lakeside destinations in total investment volumes, as well as transactions exceeding €100 million involving five-star properties.

Office: stable investment volumes, but a more selective market

The office sector recorded approximately €1.17 billion (-1% YoY), remaining broadly stable amid growing investor selectivity and evolving working models. Milan and Rome account for the vast majority of investment volumes. Initial increases in prime yields have been observed, driven by financing costs, making asset positioning and repositioning increasingly decisive.

The full report covers the share of Milan and Rome, trends in prime yields, and the period’s key transactions.

Living: +79%, driven by build-to-sell and student housing

The living sector reached approximately €900 million (+79% YoY), driven by build-to-sell and student housing, in response to housing demand and the shortage of student accommodation in university cities. Alongside new developments, the market is increasingly favouring the conversion of obsolete buildings and office properties.

The full report covers the share of new developments, conversions and refurbishments, the most active cities, and the role of forward purchase in student housing.

Alternative assets: nearly doubling, led by data centres

Alternative assets reached approximately €850 million (+93% YoY), recording the strongest growth over the period. Data centres are the leading segment, driven by digitalisation and concentrated mainly in the Milan area, often involving the conversion of industrial properties and the development of new sites. Self-storage and leisure follow.

The full report covers the share of individual segments, the most active cities, and the role of private equity in data centres.

Investor profile: institutional investors and asset management companies lead, with foreign capital accounting for 72%

Institutional investors and asset management companies (SGRs) lead the market with approximately €4.4 billion, accounting for 43% of total investment volumes, focusing primarily on retail, logistics and living. They are followed by private investors (companies, family offices, HNWIs and club deals, approximately 26%) and specialised operators (21%), particularly active in hospitality.

In terms of origin, international capital accounts for 72% of the total, highlighting foreign investors’ confidence in the Italian market.

The United States, Qatar and Spain lead in terms of investment value, while the United States, France and Spain rank highest by number of transactions.

However, the coming months may prove less straightforward. The interest rate environment will continue to weigh on investment allocations, potentially slowing transaction volumes and putting renewed pressure on prices.

The full report explores investor profiles across each asset class, the geographical distribution of investments, and the macroeconomic outlook.

Download the Investment Overview Q3 2026 report

The full report includes:

• Investment volumes by asset class, with year-on-year changes compared with the first nine months of 2025
• The geographical distribution of investments
• Investor profiles by type and country of origin
• An in-depth look at each sector: retail, logistics, hospitality, office, living, healthcare and alternative assets
• The period’s key transactions and the macroeconomic context