
The Italian commercial real estate market opened 2026 with investment volumes totaling €2.3 billion, confirming the strength of its fundamentals. Although this represents a 21% decline compared to the same period in 2025, which was a record year for the sector in Italy, performance remains positive on a 12-month basis, confirming a growth trajectory across the entire market.
In a macroeconomic and geopolitical environment that remains uncertain, marked by the return of inflationary risks, core capital continues to adopt a wait-and-see approach. The first quarter of 2026 also saw consolidation in the small and mid-cap segment, while on the debt side, growing competition among lenders is putting downward pressure on margins, improving access conditions and supporting activity also for larger transactions.
In this context, during the quarter just ended, the Retail sector confirmed itself as the leading asset class by investment volume, with €687 million invested (down 25% compared to the previous quarter and up 29% year-on-year). Activity was supported by two major outlet transactions, a significant Shopping Centre deal, a High Street transaction involving a standalone property in central Milan, and several supermarket transactions.
The out-of-town segment remains dominated by established operators alongside opportunistic capital, while greater financing availability is encouraging some landlords to pursue refinancing transactions as an alternative to disposal. In the High Street segment, activity is mainly supported by private capital, with still limited participation from core investors.
On the leasing side, rents remained broadly stable in both High Streets and Shopping Centres, in a context favoring selective strategies by retailers. The pipeline remains solid, with transactions at an advanced stage, particularly involving out-of-town assets.
Following in terms of investment volumes, the Hotels sector recorded €522 million (up 15% quarter-on-quarter and down 16% year-on-year), after a particularly dynamic 2025. Activity was driven by owner-operator transactions, which accounted for around 35% of volumes, alongside value-add and opportunistic strategies focused on assets to be repositioned or converted.
Transactions showed good geographic and positioning diversification, with deals spread across major cities, leisure destinations and secondary markets. The favorable operating environment of the Italian hotel sector continues to support investor and specialist operator interest. The pipeline remains strong, with transactions at an advanced stage—particularly in the resort segment and for sizeable ticket deals—confirming the sector’s structural resilience.
In a cautious start to the year, but without signs of structural weakening, the Office market recorded investment volumes of €277 million (down 65% versus the previous quarter and down 47% year-on-year). The pipeline remains solid and sentiment is gradually improving, supported by the progressive return of institutional capital and interest from family offices and private investors.
On the leasing front, Milan opened 2026 with take-up of approximately 64,000 sqm in the first quarter, down 42% year-on-year, reflecting a more selective approach by occupiers in a market with increasingly limited prime availability. Prime rent in the Central Business District reached a new all-time high of €790/sqm/year, with a still upward-oriented outlook. In Rome, take-up rose 17% year-on-year to around 36,000 sqm, with prime rents increasing toward a new historic high of €610/sqm/year.
The Industrial & Logistics sector recorded investment volumes of €290 million in the first quarter, in a context characterized by a limited number of completed transactions. Despite the cyclical slowdown, investor sentiment remains positive, supported by a broad pipeline and significant core deals at an advanced stage.
On the leasing side, performance was solid, with take-up of around 820,000 sqm in the first quarter, sharply up year-on-year (+76%). Demand is focused on quality logistics space, with growing interest in regional markets such as Bari and Tuscany alongside the main established hubs. Prime rents registered slight growth, supported by the scarcity of quality product and structurally robust demand, in a market where available supply remains limited and development activity remains dynamic.
Regarding the Living segment, the quarter recorded investment volumes of €162 million (down 21% year-on-year), in a start to the year still affected by limited availability of stabilized product and persistent regulatory uncertainty on the development pipeline. The expected entry of new stabilized assets to the market by year-end represents a positive signal for the sector’s progressive maturation. Investor interest remains strong, also supported by growing attention toward alternative housing models such as Flex Living and Coliving, which are gradually expanding in Italy’s main cities.
In the Student Housing segment, demand for new developments is growing, with particular focus on Milan, where some residential projects are evolving toward student-dedicated solutions. Pan-European capital with strategies dedicated to the Italian market continues to represent a key driver for the segment.
The Alternative sector also stood out, recording investment volumes of €337 million in the first quarter (up 24% year-on-year), supported by the return of strategic corporate transactions. In particular, the Healthcare segment continues to attract capital toward operators and platforms with solid fundamentals, while interest is growing for Infrastructure and Self-storage. The trend toward corporate acquisitions rather than traditional asset deals is also strengthening, highlighting the increasing sophistication of the market. Structural macro-trends—from digitalization to the expansion of social and educational services—continue to support diversification of the asset class within investor portfolios.
Completing the picture, regional markets also confirmed solid performance, fueled by high liquidity and private capital with a strong propensity to acquire. Demand remains broad and focused on assets with robust fundamentals and competitive returns, consolidating the growing role of areas outside the main metropolitan hubs.
Silvia Gandellini, Head of Capital Markets Italy at CBRE, commented: “The Italian commercial real estate market continues to show a solid growth trajectory, supported by an increasingly broad and diversified investor base, ranging from private capital to international newcomers and end users. The robust pipeline and gradual return of institutional capital strengthen our confidence in the sector’s ability to deliver positive performance throughout the year.”
Fabio Mantegazza, Head of Leasing Italy at CBRE, added: “The leasing market in Italy has become more mature, selective and demanding, and in the first quarter of 2026 this trend strengthened further. Demand for quality space in prime locations remains solid, rents continue to grow and availability remains limited. The market still offers important opportunities, provided there is the ability to identify assets in strategic and alternative locations, in line with occupier expectations.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm, and a leading provider of critical infrastructure services. The company has more than 155,000 employees worldwide supporting clients in more than 100 countries.
CBRE operates through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development).
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