THEItalian reaffirms itself as a protagonist in the real estate sector. According to the report “European Outlook 2025” by Scenari Immobiliari, our country is preparing to experience a two-year period of significant growth, establishing itself as a leader inEuropean Union. Milan, in particular, stands out for the increase in real estate prices, driving a market that also includes the residential, hotel, tourism and logistics sectors.
This theme is at the centre of Andrea Ghiaroni's article, “European real estate returns to speaking Italian”, in issue 74 of October 2024 of the Confindustria Ceramica magazine. Cer is the historic magazine of the ceramic industry, founded in 1974, and is aimed at all the players in the supply chain, from ceramic producers to technology and service providers. Published every two months, the magazine is dedicated to examining the main themes of the sector, including markets, real estate, construction and innovation.
Each issue is enriched with news columns, product sheets on the latest technical innovations, thematic Focus and Dossiers, as well as Country Reports that explore foreign markets through interviews and statistical analyses. In short, a journey into the world of ceramics and beyond, with an eye always attentive to news and opportunities.
The Return of Italian Real Estate: A New Horizon for Investors
The rebirth of the Italian real estate market is not only a sign of recovery, but also represents an opportunity strategic for the Investors. With real estate turnover expected to increase by 3,4% by the end of this year and 5,7% in 2025, the climate of optimism is palpable. Mario Breglia, president of Scenari Immobiliari, emphasizes that “the most difficult period for European and Italian real estate should be nearing its end”.
But what is the good news? First of all, the residential sector is experiencing a golden moment: demand is strong and the drop in interest rates will give a boost to sales. It is expected that in 2024 there will be around 720 thousand residential sales, and in 2025 it will rise to 760 thousand. This means a nice +36% compared to 2020. Milan leads the ranking with a price increase of 6,9%, followed by Venice (+ 6,5%) and Roma (+6%). Demand for quality properties continues to grow, driven by an expanding second home market and growing interest in the hotel sector, supported by significant investments.
Moving on to the various sectors, the second homes for tourist use continue to grind out successes, fueled by the growing demand for short-term rentals and those who want to transform their holiday home into a main residence. Even the hotel market is buzzing, with international chains making their appearance and strong interest in urban five-star hotels and resorts in southern Italy. And let's not forget the sector logistics: it grows especially in the center-south, while retail in suburban areas continues to feel the weight of the crisis. However, large-scale distribution maintains a comforting stability.
The role of Italian pension funds
The needs of an evolving market, however, also require in-depth reflection: according to the report “The house for the city of the future” presented by Scenari Immobiliari, in the next 25 years, it is estimated that approximately 3,65 million new homes, mainly in large metropolitan areas. To do so, investments of over 1.000 billion euros will be needed, with over 50 billion to be allocated for services to residents.
In short, Italy is not only a nice place to live, but it is becoming a hotspot for investments. According to the report “Investing in Italy”, the private real estate assets of large owners are currently worth approximately 144,5 billion euros. In this context, the Italian pension funds they reveal themselves to be protagonists, not only as investors, but also as promoters of sustainable development initiatives.
Giovanni Maria Benucci, CEO of Fabrica Immobiliare Sgr, emphasizes how sensitivity towards governance is constantly evolving. Pension Funds have become demanding investors, combining returns with social responsibility.