Fundamentals are strong in the office sector with a record absorption in the first half of the year for Milan and above the 10-year average for Rome. This has supported investment, which is more focused on the primary markets. The office still plays a central role in occupiers’ organisation and its business, but the new space planning philosophy is geared towards flexibility and a new approach to the working environment, where employee welfare and sustainability are the new drivers of demand.
GDP should rise also in the second quarter of 2022, supported by fixed investment and government consumption, but high inflation could affect consumer spending, as well as consumer and business confidence. The second quarter confirmed stable rental values and increasing numbers of visitors and international tourists generated cautious optimism. On the investment side, the out of town market was still the most attractive to buyers
The logistic sector maintained a strong performance and in the first half of the year registered record levels both from an occupational (+21% increase on H1 2021) and an investment (more than twice H1 2021) perspective. Steadily growing absorption and a demand that rewards developments in strategic locations with high rents are driving investors’ confidence.