Italy is gaining favor with worldwide investors: €7.3 billion in property investments in the first half of 2026

Detailed study by Patrigest | Gabetti Group highlights a significant shift in the Italian market: 7.3 billion euros in investments, with 67% originating from foreign sources, showcasing a notable surge in retail and remarkable expansion in the data center sector.

Despite global uncertainties, rising prices, and the ECB's strict monetary policies, real estate investments in Italy saw a 37% increase compared to the same period in 2025.

Crucial market sectors

• Retail: ~€2.4 billion (+116%)

• Dominating in terms of value. The second quarter marked a historic high for the sector (exceeding €1.6 billion). Growth was primarily fueled by shopping centers, outlets (including significant pan-European deals for Serravalle Scrivia and Castel Romano), and the prestigious High Street Prime category, notably the sale of 80% of the property on Via Montenapoleone 8 in Milan, valued at over €1 billion.

• Logistics and industrial: €1.2 billion (+48%)

• The sector's recovery was driven by three substantial portfolio transactions (each exceeding 100 million euros) along the key Milan-Bologna and Turin-Milan-Venice corridors, solidifying Northern Italy's position as the nation's primary distribution center.

• Hospitality: ~1.2 billion € (-10%)

• Figures remain close to the record set in 2025. The Luxury & Upper Scale sector represents 85% of the total volume. Milan leads with 30% of the sector's total volume, followed by Rome at 20%. Hotel operators and private investors are active in various regions (Sicilian coast, Lake Como, Alps).

• Alternative assets: €750 million (+140%)

• The fastest-growing segment overall. Milan and its surroundings dominate the data center sector. Italy ranks third in Europe in terms of data center numbers (over 200 facilities), trailing only Germany and France.

• Residential real estate (Living): ~€650 million (+89%)

• Nineteen major transactions were finalized: 48% of the volume was in the Build-to-Sell sector, with 41% involving student housing. Over 60% of investments were drawn to the Milan area, alongside growth in Padua, Rome, and Florence.

• Office real estate (Office): ~€650 million (-29%)

• Demand is increasingly selective: 80% of investments concentrate in the central business districts (CBD) of Milan and Rome. Private buyers (HNWIs and family offices) account for over 40% of the volume. Converting obsolete office buildings into residential and hotel spaces is a growing trend.

Foreign investments and main players

Foreign capital contributed to 67% of the total transaction volume:

• The United States, Qatar, and Spain lead in investment amounts.

• For transaction numbers — the USA, France, and Spain.

• Italian investors show a preference for office real estate and residential development projects (BTS).

“A notable new trend is the fundamental shift in demand. Interest in alternative assets like data centers is rising, the housing and student residence sector is strengthening, and the repurposing of outdated properties for new uses continues,” remarks Luca Dondi dall’Orologio, CEO of Patrigest (Gabetti Group).