ITALIAN PROPERTY SECTOR: WHAT’S NEXT IN 2017?
After a record year, with an investment volume of 9.1 billion Euro, 2017 promises to be another good year for the Italian real estate market. In the new Italy - Real Estate Market Outlook 2017, CBRE analyzed the property sectors in 2016 pointing out the major future trends.
• 2017 will again be a year of slow growth, below 1% and the general environment will be dominated by the political uncertainty. Despite that employment, consumption and household confidence are expected to improve in 2017 albeit at a slow rate.
• Plenty of capital availability and the premium still paid for real estate will continue to foster investment in 2017.
• Demand for office space in Milan and Rome will continue to be high in 2017 but development activity is still limited; refurbishment in key locations is increasing, which is contributing to the rise in the offer of grade A properties.
• In 2017 strong interest by international retailers is being confirmed with new entries into the Italian market.
• Strong interest by logistics operators engaged in restructuring their supply chains.
• Investment activity in the Italian hotel sector continued to grow in 2016 and the forecasts for 2017 continue to be positive.
• Demand for investments in alternative sectors is growing in 2017, with both core and core plus investors continuing to seek opportunities in these non-traditional sectors.
• 2017 could be the turning point for the Italian NPLs market, with further growth in volumes and the market becoming consolidated and mature.
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