Surprisingly, despite a context that is stagnant to say the least and faced with the total inertia of the government, the Italian real estate market is growing in 2025 as it has not done for a long time: according to the analysis of Dils Research Team, last year our real estate recorded investments of approximately 12,4 billion euros, the highest level in the last six years and close to an all-time high. The fourth quarter in particular made a decisive contribution to this achievement, thanks to investments totaling approximately €4,3 billion, the best quarter in the last four years. Compared to 2024, this represents a 23% increase for the year and a 25% increase for the fourth quarter alone. This performance reflects the high confidence of domestic and international investors in the prospects and solidity of the Italian real estate market.
The best performance is that of Retail
Also in 2025 the retail Real estate has confirmed itself as the most dynamic asset class in the Italian real estate market, distinguished by its strong ability to attract capital. The fourth quarter alone saw investments of approximately €1,1 billion, bringing the annual total to €3,4 billion. This represents a 39% increase over the already solid 2024 figure and marks a new all-time high for the sector in Italy. This momentum was supported by high-profile transactions, including three transactions worth more than €400 million, including a share deal in a large-scale retail company in Q4. Looking at the full year 2025, investments were primarily concentrated in the retail segments. Factory outlet, High Street e Shopping Center.
The hospitality sector is also increasingly attractive
The sector Hospitality It remains among the most attractive for investors, positioning itself as the second-largest asset class in the market. In the fourth quarter of 2025 alone, investments reached approximately €450 million, bringing the annual total to nearly €2,4 billion, the best performance in the last six years, with a 30% growth compared to 2024. Interest has focused particularly on iconic structures and assets with potential for repositioning in the luxury segment, as evidenced by the five transactions valued at over €100 million. Capital has been directed primarily toward major cities, with Rome standing out with over €650 million invested, and toward the country's most established tourist destinations.
Logistics also achieved top results in the fourth quarter
In the fourth quarter the sector Logistics The company recorded investments of just under €1 billion, one of the best results in the sector's history. The annual investment volume totaled approximately €2,2 billion, a 31% increase compared to 2024. The quarter was marked by a high incidence of core transactions, confirming the strong confidence of investors—primarily international—in this asset class. This environment continues to support the gradual compression of prime net yield, which stood at 5,20% in Q4 2025, with further contraction expected during 2026.
Logistics space take-up accelerated in the fourth quarter, with approximately 815.000 square meters of take-up—the best quarterly performance in the last two years—for a total of nearly 2,5 million square meters in 2025, in line with the previous year. This marks the seventh consecutive year for Italian logistics with a take-up of at least 2 million square meters, confirming the sector's importance, despite a stabilization in volumes compared to the peak reached in 2023. Rents remain substantially stable, with prime rent remaining at €70/sqm/year in the Milan and Rome markets.
20% increase for office business
The sector Offices showed particularly solid performance in the fourth quarter, with investments totaling approximately €800 million, a 20% increase compared to the same period in 2024 and the best quarterly result in the last three years. Overall, 2025 closed with volumes of €1,9 billion, down 14% year-over-year, reflecting a market that remains selective yet dynamic in high-quality deals. Milan remains the main hub for capital, attracting over 70% of investments, followed by Rome with approximately 20% of the national total.
The strong acceleration observed in the fourth quarter was mainly driven by core transactions on iconic assets, which contributed, after approximately two years of stability, to an initial compression of prime net yields: 3,80% in Milan and 4,30% in RomeThis downward trend is expected to gradually continue in the coming quarters, supported by renewed investor interest in prime products in key markets.
Milan in line with the last decade
During 2025, the take-up of office spaces in the market of Milan The quarter reached approximately 405.000 square meters, a volume in line with both the previous year and the average of the last ten years. The fourth quarter provided a particularly significant contribution, with approximately 125.000 square meters absorbed, making it the most dynamic quarter of the year thanks to the increase in the average size of deals. In fact, four leases exceeding 5.000 square meters were completed during the period, compared to only five recorded in the first three quarters of 2025. Over the past two years, the persistent shortage of available space in the most sought-after submarkets, such as the CBD and Porta Nuova, has limited the full expression of demand, despite the high level of tenant interest. This imbalance between supply and demand is driving a progressive increase in rents, particularly for higher-quality properties: in the fourth quarter of 2025, prime rent in the Milan market reached €850/m2/year, with further increases expected throughout 2026.
Rome accelerates compared to 2024
In the market of RomeThe fourth quarter saw take-up of approximately 51.000 square meters, bringing the total year-to-date to approximately 150.000 square meters. This represents a 10% increase compared to Q4 2024, but a 14% decrease year-over-year. Over the past year, there has been an increase in transactions involving Grade A/A+ properties, reaching approximately 67.000 square meters, confirming the strong demand for quality assets in the Roman market. In Q4, this trend was supported by two significant acquisitions. pre-let: the first, concluded in the CBD with a renowned fashion house, contributed to the increase in the prime rent benchmark, which now stands at €630/m2/year; the second, for a total of 28.000 m2 in the EUR Core, represented a record transaction for the submarket in terms of standing Tenant and project quality, involving the new headquarters of a leading global engineering firm. In this context, rent growth prospects remain solid, supported by limited space availability and a limited development pipeline, factors that continue to exert significant pressure on prime assets in the most sought-after submarkets.
Living boom, in line with 2022's all-time high
The sector of the Living The residential property market has now consolidated its position among investors' favorite asset classes, returning to levels in line with 2022, the year that saw the sector's best performance. In the last quarter, investments reached approximately €330 million, bringing the total year-to-date to over €1 billion, an increase of over 70% compared to 2024. Milan remains the leading destination for residential investments in Italy, accounting for 66% of capital, followed by Turin, Rome, and Bologna. The sector's performance was primarily driven by Student Housing which, on an annual basis, has doubled its investment volume, with over half of the value attributable to transactions core.
And the residential market? Here are the numbers.
In the third quarter of 2025, the Italian residential property market confirms the positive trend of the first half of the year, with 174.892 transactions, an 8,5% increase compared to the same period of the previous year.
In Milan, 5.662 sales were completed (+11,8% compared to the third quarter of 2024), with a clear predominance of small units (65% under 85 square meters). New constructions accounted for 9,5% of transactions, a figure in line with previous quarters and 3,1% higher than the national average.
In Rome, the market also continued to grow, with 8.327 transactions (+6,4%), in line with the positive trend underway for over a year. Nearly half of the sales (49,2%) were for medium-large properties (over 85 square meters), while new construction accounted for 7,6%.
The stable financial environment continues to support the market: in the third quarter of 2025, average interest rates stood at 3,35%, and the share of purchases with mortgages reached 54,4% in Milan and 60,8% in Rome, both up from the beginning of the year. This positive trend mirrors the national trend, which accounted for 47,0% of purchases in the third quarter of 2025.
Long-term rentals are declining in Milan and Rome.
Growth continues in the third quarter rental market Nationally, but with differing trends in major urban centers. In Rome and Milan, the long-term rental market continues to decline, with an initial decline in temporary rentals as well. Compared to the third quarter of 2024, standard rentals (4+4) contracted by 1,6% in Rome, while in Milan the decline was 3,0%. Overall rents also decreased, by 2,0% and 4,1%, respectively. Regarding temporary rentals, the number of rentals decreased by 3,1% in Rome and 1,2% in Milan. However, the volume of rentals in this segment increased by 7,2% in Rome and 3,0% in Milan.
The case of the San Siro stadium
The sector of Alternatives confirms its attractiveness to investors, with a total annual volume exceeding €1,5 billion, of which over €600 million recorded in Q4 alone, marking the best result in the last five years. In the last quarter, investments in the segment Healthcare They reached approximately €390 million, primarily attributable to two nationally significant portfolios. Also noteworthy is the sale of the San Siro Meazza Stadium, acquired by FC Internazionale and AC Milan.
