Offices. Compared to both 2002 and 2003, this year the investment figures will be lower in all three markets (Milan, Rome and the rest of Italy, see the graph) while at the level of rents Jones Lang LaSalle foresees a phase of stability in the maximum rents, depending on the limited quality offer in the primary areas and with the sword of Damocles of a possible offer of higher quality offices at lower rents in foreign countries. The highest rent is recorded in Milan with 450 /m2/year in the center while in Rome in the center it reaches 400 /m2/year despite the market offering a limited availability of product capable of justifying obtaining an adequate rent. International investors are not yet willing to invest in these markets, even if they have some interest in them.
Shopping centers. Rental fees have been continuously increasing for years with these maximums: 850 /m2/year for commercial units located in malls, 425 /m2/year in factory outlets and 450 /m2/year in retail parks. Italy will be one of the European markets with the highest increase (see graph). The investment market has also recorded a constant increase with a total volume of transactions up to last September of 920 million with an increase of 24% compared to 2003, even if the volume was driven by a single transaction which represents 37% of the total volume invested in 2004 (the acquisition of the Lunghezza shopping center in Rome by Ing real estate). Investor interest remains high.
Hotels. In 2003, Italy was the third European country for investments, largely due to the sale of the Prince of Savoy of Milan. We are starting to notice an increase in investments by EU countries.
Logistics. In 2004, Italy was the fifth country in Europe behind the United Kingdom, France, the Netherlands and Sweden in the logistics sector.
source: Real Estate Observatory
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