Real estate foreign investments boom in Italy in 1st half 2017

Why foreign investors invest in real estate in Italy

Termoli, Italy
Termoli, Italy

Six main reasons for investing in real estate in Italy if you are a foreigner

  • There are plenty of creative Italian companies that are exporting a lot, at relatively competitive prices. These same companies are often bought by foreigners at reasonable prices
  • Italy is beautiful, rich in artistic and cultural heritage, dotted with tourist springs and cities of art, having magnificent beaches.
  • The purchasing power of the Italians, affected by the crisis more than in the rest of Europe, has brought down the price of real estate in Italy, which are now relatively cheap.
  • There are many judicial auctions where you can get bargains
  • Its climate is mild and temperate
  • Its population has the reputation of being cheerful and friendly

Italian real estate market boosted by foreign investment in second quarter of 2017

During the second quarter of 2017, nearly € 4 billion was invested in the Italian real estate market, representing € 5.8 billion for the first half of the year, with a 58% increase compared to the same period last year – and thus establishing the largest volume of real estate investment ever recorded in a period in Italy.

Interest in the sector is therefore very strong in the first half of the year, with dynamic activity “plus” and growth in both the average value and the number of transactions compared to the first half of 2016. This is what emerges from the analysis of CBRE, the leading real estate consulting firm.

80% of investments in Italian real estate came from abroad

Foreign capital accounted for 80% of total investment in the first half of the year, at around € 4.5 billion, an increase of 67% compared with the first half of 2016. The share of Italian investment continues To improve with more than 1 billion euros invested in the first six months of 2017.

In terms of sectors, offices still have the largest share of investments: 2 billion in the first half of 2017 (+ 30% compared with the first half of 2016), followed by retail sales totaling 1, 2 billion (+ 76% compared with the first half of 2016). The volume of replacement investments is high at 992 million, almost twice as high as the first half-year 2016. Logistics, which began this year, continued to attract investors’ interest in To reach a total of approximately 800 million investment (+ 291% compared to the same period in 2016). Even the hotel sector, with 770 million (+ 49% in the first half of 2016), continues to attract more and more investments.

As regards geographical areas, there is an improvement in the Roman market, with € 1 billion invested in the first half of 2017, an increase of 30% compared with the same period in 2016. Milan reached an investment volume of 1.8 billion euros, 25% more than in 2016; of these, 48% relates to the office sector. Milan and Rome then confirm that they are the most attractive places for investors, accounting for 50% of total investments in the first half of this year.

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