Italian Real Estate Strategic Outlook
Investors flocked back to Italy in 2015. While this momentum should continue into 2016, unless the economy can substantially outperform expectations we see a risk that rental growth will not be able to compensate investors for today’s lower income returns. We continue to favour retail and logistics over offices. We see shopping centres offering the highest returns over the next five years, followed by logistics. With online sales in Italy growing rapidly but well behind Europe, successful shopping centres and logistics formats in markets such as the United Kingdom and France should provide a useful investment guide.