ITALY Law and Practice Contributed by: Guido Alberto Inzaghi, Ivana Magistrelli, Silvia Gnocco and Gabriele Paladini, SI – Studio Inzaghi
The office sector also demonstrated remarkable growth, with total investments reaching EUR1.9 bil - lion nationwide in 2025. Approximately EUR800 mil - lion of this was transacted in the fourth quarter alone. Milan and Rome remained the focal points for invest - ment, attracting 70% and 20% of the annual volume, respectively. The logistics sector attracted approximately just under EUR1 billion in the fourth quarter, bringing the total for the year to approximately EUR2.2 billion, presenting a 31% increase compared to 2024. Market sentiment suggests the start of a downward trend in yields, with prime yields contracting to 5.2%. The living sector has reasserted itself as a top-tier asset class, recovering to 2022 levels – the strongest year on record for the sector. The final quarter contrib - uted approximately EUR330 million, pushing the full- year total beyond EUR1 billion, a rise of over 70% on 2024. Milan accounted for 66% of residential invest - ment nationally, ahead of Turin, Rome, and Bologna. Growth was largely driven by student housing, where transaction volumes doubled year-on-year, with core transactions accounting for the majority of total value. Investor demand for technological infrastructure and healthcare assets remained strong, with the alter - natives sector registering an investment volume of approximately EUR1.3 billion. Notably, education and data centre assets also saw substantial investment growth. The hospitality sector, already a key performer in 2024, achieved another significant increase in investment activity, rising by 30% year-on-year to reach approxi - mately EUR2.4 billion in 2025. The luxury hospitality segment remains a priority for investors, particularly in Rome, where an active pipeline of high-end openings continues to drive market momentum. Generally speaking, the positive momentum that char - acterised the Italian real estate market in 2024 gained further traction throughout 2025, pushing investment volumes toward levels not seen since the market’s peak years.
The combination of declining inflation and lower inter - est rates in 2025 played a pivotal role in stimulating Italy’s real estate market, easing borrowing costs, making mortgages more affordable and boosting property sales. In the first quarter of 2025 alone, the ECB reduced the deposit rate by a further 25 basis points, bring - ing it to 2.65%, with market expectations pointing to additional cuts in the months that followed – a notably faster shift toward an accommodative stance than ini - tially anticipated. At the European level, Italy has carved out a distinctive position, standing alongside other Southern European markets as one of the continent’s most compelling real estate destinations. The country’s robust market fundamentals and consistent ability to attract both domestic and international capital have proven resil - ient even amid heightened global uncertainty. The most significant deals in 2025 included the fol - lowing. • In October 2025, Percassi Group, in joint venture with Generali Real Estate, acquired Orio Center – Italy’s largest shopping mall – located adjacent to Bergamo’s Orio al Serio airport, from Germany’s Commerz Real for approximately EUR 470 million. The transaction also included the acquisition of the four-star, 118-room Hotel NH Orio al Serio, which forms part of the broader retail and hospitality complex. • The Valesco Group completed the majority invest - ment in Casa Moncler, the brand new global headquarters of luxury fashion brand Moncler, developed by Covivio and located in Milan. The transaction, valued at approximately EUR200 mil - lion, is the largest in the Italian office sector over the last three years. The Grade A+ campus spans approximately 38,000 square metres and offers a range of amenities, including a gymnasium, restau - rants, and a multifunctional auditorium, targeting LEED Platinum and WELL certifications. • In December 2025, Kryalos SGR completed the sale of the prestigious office building at Via Bas - sano Porrone 6 in Milan to the family office of a leading private investor. The property extends over
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