CBRE LAUNCHES “PERSPECTIVE 2016”
A magazine and an annual event to outline the main trends expected in the Italian real estate market
2015 was a positive year for the European real estate sector, with an investment volume of over €260 billion, above the record levels of 2007. In Italy, €8.1 billion was invested, up 50% compared to 2014. How will the Italian real estate market fare in 2016? CBRE, the world's leading real estate consultancy firm, tried to answer this question in, "Perspective 2016", an annual magazine produced to outline the future trends in the Italian market, in light of broader global scenarios. The publication is put together by CBRE’s Italian business, specifically using the information from the Investment Properties, Capital Advisors and Global Workplace Solutions service lines using their collective knowledge of the European real estate market.
On the back of a survey conducted in December 2015, a return of confidence in economic recovery is the overriding mood amongst investors in the country. In fact, 75% of investors and 70% of occupiers believe that the recovery is already happening and will strengthen during 2016. The improvement of economic fundamentals is a necessary condition to keep the real estate industry alive and stimulate the investments. In fact, 62% of surveyed investors believe that their investment in Italian real estate will be higher in 2016, compared to 2015.
The survey confirms that in 2016 the most attractive city, in terms of investment, is Milan, followed by Rome. The role of secondary markets is still low, although interest interest in regional cities like Florence or Venice is beginning to take hold, in particular in non-directional asset classes, such as hotels and high street.
The sentiment of the Italian market for 2016 is positive the interest in real estate investments may continue and grow stronger, although much will depend on the future development of financial markets. Where the "product" may be seen as somewhat lacking , it will have to combine on the one hand innovation and imagination, and on the other hand, private and public engagement, starting from a strong intervention on the knot of non-performing loans, which we consider crucial to permanently unlock the market.
Despite uncertainties and volatility in financial markets the economic fundamentals of Europe show a positive trend, in the general context of low interest rates. This trend will continue to favor the interest of investors in the European real estate market, that, in 2015, exceeded the record volume of investments of 2007.
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