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The riskiest capital arrives in Italy

02 November, Il Sole 24 Ore

The Italian market is growing, even though the operators continue to call it “dwarf business”. The latest outlook predicts a year-end with an investment volume between 9 and 11 billion euro.

“Emerging Trend in Real Estate is in its fifteenth edition and it highlights some common trends in Europe: – explains Elisabetta Caldirola- the confirmation of logistics as the favourite sector in terms of investment and development perspectives in 2018 thanks to the economic growth; a residential sector, in the “built-to-rent” form, at the centre of the scene, due to the chronic lack of accommodation in most of the European cities; the reconversion of properties as alternative developments projects to address the problem of land usage”.

In Italy, Milan confirms to be the hub for real estate investments. “The low returns don’t discourage the investors that are looking with renovated enthusiasm at offices, retail, and logistics – says Calidirola – the Pan European funds, the French and German retirement funds see the opportunity to reposition their investments towards active strategies aimed at creating value through the transformation of the assets”. For this reason, a new segment of value add investments has developed in the cities, implicitly implying a bigger risk compared to “core” investments, a risk that today the investors are willing to take.

“Instead, Rome, for its touristic vocation, is a crucial point for investments in the hospitality sector – says Caldirola   – featuring a static office segment due to the presence of public institutions. The perception of instability of the investors due to the complex political situation of the capital hasn’t favoured risky investments here. Finally, the fear of not being able to absorb the stock of non-performing loans that the country has accumulated during the recession still limits the availability of debt capital, even though banks have resumed issuing loans, but in a more selective way”.

Source: Il Sole 24 Ore (by P. De)

Translator: Cristina Ambrosi

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