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According to the analysis by Dils’ Research Team, the Italian real estate market recorded investment volumes of €7 billion in the first half of 2026, marking the strongest result since records began. This figure represents a 28% increase compared with the first half of 2025 and a 62% rise versus the average of the last ten years, confirming the solid strengthening of investment activity across the national market. Following an already particularly positive start to the year, the second quarter delivered a further acceleration in transaction volumes, contributing approximately €4.3 billion and recording a 56% increase compared with the first three months of the year. This performance reflects investors’ growing interest in Italian real estate and the market’s ability to attract capital.
Retail confirmed its position as the most dynamic asset class in the first half of the year, attracting approximately €2.3 billion investments. The second quarter recorded the strongest quarterly performance ever observed for the sector, with volumes amounting to €1.6 billion. The market particularly benefited from several extraordinary transactions involving trophy assets: over 80% of invested capital was attributable to two major share deals relating to the property at Via Montenapoleone 8 in Milan and to a pan-European outlet portfolio with significant exposure to the Italian market, including Serravalle Designer Outlet and Castel Romano Designer Outlet. At the same time, the Shopping Centre segment showed renewed momentum and, after several years of subdued activity, has once again attracted strong investor interest. Over the last twelve months, the segment has attracted more than €1 billion investments, confirming the sector’s appeal.
The Logistics sector also recorded a strong acceleration in the second quarter, with approximately €770 million invested, bringing first-half volumes close to €1.2 billion. This represents the best result recorded in the last four years and an increase of around 50% compared with the same period in 2025. The performance was mainly supported by three major portfolio acquisitions by international institutional investors, which accounted for approximately 75% of quarterly volumes. Among these, one exceptional transaction stands out, representing the largest logistics portfolio transaction ever completed in Italy in terms of capital invested.
Demand for logistics space maintained a particularly strong pace in the second quarter, with take-up of approximately 730,000 sqm, bringing first-half absorption to around 1.6 million sqm - the highest level ever recorded in Italy for the first six months of the year. Over the last twelve months, absorbed volumes exceeded 3 million sqm, a level never previously reached by the Italian logistics market. Activity was mainly concentrated in the key logistics hubs of Northern Italy, with Lombardy and Emilia-Romagna accounting for approximately two thirds of total quarterly take-up. Retailers made a particularly significant contribution, accounting for three of the four largest transactions completed during the period. Sustained demand for high-quality space also continued to exert upward pressure on prime rents, which in the second quarter of 2026 reached €73/sqm/year in the Milan market and €72/sqm/year in the Rome and Bologna markets.
The Hospitality sector attracted approximately €1.1 billion investment during the first half of 2026, of which more than €660 million was concentrated in the second quarter, up 55% compared with the first three months of the year. Although the sector recorded a slowdown compared with the exceptional performance of the first half of 2025, it continues to show particularly solid momentum, with volumes 23% above the average of the last ten years. While the two largest transactions of the quarter were completed in Rome, Milan proved to be the most active market, attracting approximately 40% of capital invested during the period. At the same time, investor interest also extended to the main Alpine destinations in Valle d’Aosta and South Tyrol, reflecting the growing attractiveness of markets linked to high-end tourism.
The Office sector totalled approximately €880 million investments in the first half of 2026, up 13% compared with the approximately €780 million recorded in the same period of 2025. Activity in the second quarter was concentrated on medium- and small-sized transactions in the Milan and Rome markets, except for the contribution made by the office component of the Via Montenapoleone 8 property. Overall, Italy’s two main markets accounted for 84% of national investments during the semester, with Milan representing 50% of total volumes and Rome 34%.
On the occupier side, Milan’s office market recorded take-up of approximately 70,000 sqm in the second quarter of the year, bringing the total for the first half to around 137,000 sqm, down 35% compared with the same period in 2025. The contraction in activity is mainly attributable to the persistent shortage of high-quality assets, particularly in the most sought-after locations. Specifically, the CBD and Porta Nuova submarkets together account for less than 5% of available space, with a vacancy rate remaining around 2% of total stock. The limited availability of large spaces also acted as a constraint on volumes: in the first half of 2026, only one transaction above 5,000 sqm was recorded, while the average transaction size fell below 800 sqm, compared with around 1,200 sqm for the average of the last five years. In this context of particularly compressed supply, prime rent continued to increase, reaching €900/sqm/year.
In the Rome market, second-quarter take-up amounted to approximately 28,000 sqm, bringing absorbed volumes in the first half of the year to around 66,000 sqm, up 27% compared with the same period in 2025. This result was supported by a higher number of transactions ranging between 5,000 and 10,000 sqm, four of which were recorded in the first half of 2026. This trend confirms tenants’ interest in large spaces, especially when characterised by high quality standards. Current availability, which is struggling to meet strong demand, is showing an increasingly pronounced contraction trend in the most desirable submarkets and in those immediately adjacent to them, supporting prime rental levels, which continue to reflect sustained upward pressure, standing at €630/sqm/year during the quarter.
The Living sector continued to consolidate its role among the most dynamic asset classes in the Italian market, with investment volumes of approximately €730 million in the first half of 2026, of which around €340 million was recorded in the second quarter. This marks the strongest result of the last ten years and a 69% increase compared with the same period in 2025. Quarterly activity was mainly driven by new developments or the repositioning of existing assets, confirming investors’ growing interest in value-enhancement strategies aimed at expanding and upgrading the residential offer. Within this context, the Student Housing segment stands out for its dynamism, with volumes close to €300 million, almost tripling compared with the previous year. This reflects solid investor interest in a market characterised by structurally high demand and a persistent shortage of beds in the main university cities.
In the first quarter of 2026, 179,654 residential transactions were completed in Italy, representing a 4.4% increase compared with the same period of the previous year. Following the peak recorded in 2025 - which marked the second-best result of the decade in terms of number of transactions - growth appears to have stabilised. At national level, new-built properties accounted for 6% of transactions in the first quarter of 2026, down from 7.9% in the fourth quarter of 2025. In major cities, however, the figure remains significantly higher: Milan stands at 11.6%, while Rome reaches 9.5%.
The financial environment remains broadly favourable, albeit in a climate of uncertainty linked to international tensions. In the first quarter of 2026, average mortgage rates stood at 3.57%, up 6 basis points compared with the previous quarter. The share of purchases financed through mortgages rose to 47.8% at national level, in line with the growth observed during the first three quarters of 2025.
As for residential lettings, the national picture remains stable, with different dynamics across the main urban centres. Compared with the first quarter of 2025, standard lease agreements show a slight increase in Rome (+1.2%) and a further decline in Milan (-13.2%). The two cities also recorded opposite trends in terms of total rental value: Rome posted an 8.8% increase, while Milan recorded a 6.2% decrease. The same trend was confirmed in the temporary lease segment, where the number of contracts increased by 6% in Rome and declined by 4.9% in Milan. Meanwhile, agreed-rent contracts are spreading increasingly rapidly, especially in Milan, both in long-term and temporary formats.
The Alternative and Mixed-use sectors confirmed their significant contribution to investment activity also in the second quarter, with volumes of approximately €410 million, bringing the first half total close to €890 million. Performance was supported by several major transactions completed in the Data Centre segment, which continues to benefit from strong investor interest, as well as in the Leisure segment, where the acquisition of the Unipol Forum in Assago stood out.
The record result recorded in the first half of the year confirms the strengthening of the Italian real estate market and its growing ability to attract both domestic and international capital. In a global context that continues to be characterised by elements of uncertainty, Italy stands out for the consolidation of its market fundamentals and for its competitive profile within the European landscape. This trend places the country alongside the other main Southern European markets, such as Spain, Portugal and Greece, which are benefiting from increasing attention from the international investor community.
A distinctive feature of the current market phase is the broad diversification of the investor base. Alongside core institutional investors, focused on long-term strategies, and value-add and opportunistic investors, concentrated on development and asset repositioning strategies, there is a growing presence of private capital attributable to major family offices. The complementarity of these different investor profiles is contributing to increasing market dynamism and supporting the evolution of new areas of investment.
In this context, the Italian market continues to offer opportunities across a broad spectrum of asset classes, both traditional and emerging. Alongside established sectors, interest is growing in segments characterised by solid long-term structural drivers, such as Alternatives and Living. Student Housing remains among the most dynamic sectors, supported by a persistent imbalance between demand and supply, while Education and Healthcare are emerging as areas of growing interest for investors. At the same time, the market is beginning to open up to innovative formats already established in other countries, such as Branded Luxury Residential, further expanding the range of available opportunities and contributing to the ongoing maturation of Italian real estate.