Rome: investment record for offices and retail

25 November, Il Sole 24 Ore

According to the latest Cushman & Wakefield on the retail real estate market, Rome shopping streets rank fourth in Europe with 12,500 euro/Sq m, after London, Paris and Milan. Real estate investments in the Capital were 2 billion in 2018 and are expected to reach 1.5 billion this year.

Offices attract a large part of such investments, having gone from 250 million euro in 2014 to over 1.2 billion in 2018. The absorption rate has grown consistently, with leased spaces having grown from 82,000 Sq m in 2014 to 200,000 Sq m in 2018. Thanks to institutional investors, the offer for prime offices had increased, reflecting positively in the demand from multinationals.

Together with offices, also hotels have a strategic role in the relaunch of Rome real estate. Hospitality investments in the Capital reached over 500 million euro, thanks also to the contribution of international hotel chains and institutional investors. Moreover, the offer has further diversified with emerging trends such as apart-hotels, hostels and student hotels.

Concerning retail, despite the rise of e-commerce (although representing only 5% of the Italian market), there is still great interest in shopping streets, especially in the case of luxury brands.

Finally, after a period of standstill, it seems that the market in Rome has finally restarted, thanks to institutional investors, who saw an opportunity in the city, and to companies, hotel chains and brands that, in the presence of a suitable offer, didn’t wait to enter the market.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

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