25 May, Re Quadro
The Italian real estate market is going through a significant transformation. There are external factors such as the socio-demographic dynamics and tourism, as well the macro and microeconomic factors that picture a rather changeable demand of the sector.
The figures concerning the latest investments reflect such a scenario. Despite having been above the average of the first quarters of the last ten years, transactions’ volumes have registered a physiological period of adjustment.
Among the reasons for this adjustment, there is the lack of core products and the harsh competition among the players to acquire high-quality and high-efficiency buildings. The demonstration of this transition phase is the sold out of the prime offices in Italy’s main gateway, Milan, and the consequent odd performance of transactions for offices in the city.
In other words, the demand is awaiting new or renovated properties, plus the currently ongoing real estate projects on the national territory have attracted the investors’ attention. For example, the implementation of innovative logistics and sustainable platforms in strategic locations such as Bologna or Padua show the high interest in the advanced manufacturing sector in Italy.
Narrowing down the analysis to the main developments in the two Italian biggest cities, Milan and Rome, it turns out that the common element of the operations is the revaluation of the existing urban spaces and the regeneration of the suburbs.
Rome is the one that needs the most a change. Among the developments, there are, for example, co-housing spaces and much more. In the capital, the new Business City of Rome Fiumicino is currently under construction with the endorsement of Aeroporti di Roma, and it aims at using the area between the airport and the train station to build ad hoc spaces to satisfy the operators of the technology, advertising, media and information sectors.
The new IBM headquarters is another project taking advantage of a prestigious tenant to revitalise the services and the infrastructure of the Rome exhibition fair.
Whereas in Milan, besides the anticipated completion of Symbiosis and CityLife, there are also the requalification project of the train stations and the conversion of the Exo area into a science district, with a strong urban and social regeneration component.
Besides, there are the projects concerning the requalification or the construction of stadiums and sports facilities, as Stadio Olimpico in Rome and SportLife City in Milan. They’re both aimed at transforming monofunctional spaces into hybrid and multifunctional facilities. Certainly, one of the most important projects for the future of Italian real estate is Westfield in Milan, Europe’s biggest shopping centre, which will offer plenty of opportunities not only to the players of the real estate sector.
Source: Re Quadro
Translator: Cristina Ambrosi