09 February, Cbre
Cbre, the leader in the real estate consultancy sector, has published today a survey regarding 50 national and international investors to see how the Italian market will be impacted by their strategies this year.
From the survey, presented in occasion of Perspective 2018, it emerged that 70% of the investors don’t see the political elections as a threat for the sector and believe that the Italian economy will strengthen further (63% of the people surveyed). Moreover, 70% of the people think that the inclusion of real estate investment companies in the PIR scheme (individual saving plans) will give a positive impulse to the sector. For what concerns investments, after the record of 2017, the outlook is positive also for 2018: new investors, new asset classes and new investment vehicles might lead to a further growth.
Italy is considered an interesting investment target in Europe, with a good growth potential and a high level of consumption and of disposable income. Hence, we can look at 2018 with positivity, considering the political uncertainty is not a determining factor for investors. The growth forecast is better than the past. Banks seem to have found stability, and they might start again funding the economy now that they’ve got rid of the burden of NPLs.
In the comparison with 2017, 45% of the investors declared that they would increase their investment activities in 2018, continuing the trend of the previous year (47% compared to 2016). Once again, the main obstacle is the lack of offer (25% of the interviewed), followed by the price of the assets (16%), and by the lack of transparency of the market (13%).
2018 will be the year of logistics: after two record years, the sector continues to offer the greatest growth opportunities. In fact, 20% of the surveyed said that logistics is the favourite investment target in Italy, with investments grown by 8% from 2016 and by 14% from 2017. In 2018, the total developments should exceed one million Sq m, confirming the positive phase for the segment and its increased importance in real estate investments. There will be also an increase of research activities in property types that weren’t considered before, such as small- and medium-sized depots, as well as in locations that were considered marginal before by investors.
According to the investors, over 40% of them thinks that, also for this year, banks will be the most active players in real estate transactions, property funds are second (25% of the surveyed), followed by the public sector (about 15%), and by developers (12%). Finally, 60% of the interviewed stated that they’re currently evaluating new development opportunities, about a half (45%) identifies these opportunities in offices, while 90% indicates Milan as the favourite destination.
Translation: Cristina Ambrosi