In #the first quarter of 2024, real estate investments recorded a value of approximately 1.9 billion of Euro, +85% compared to Q1 2023. This is according to #the latest analyzes by JLL, a company specialized in professional services and investment management for #the real estate sector. Although a challenging macroeconomic and geopolitical context remains, #the first quarter of 2024 therefore confirms #the signs of recovery already outlined in #the last months of 2023, which have materialized in growth from an investment point of view. #Here #are #the #best performing segments in #the first part of #the year.
“In #the first quarter of 2024, #the real estate market recorded a marked improvement, with an 85% growth in investments YoY, although not at #the record levels of 2022 and with a slower recovery than estimated, due to #the macroeconomic context” commented Alberico Radice Fossati, Head of Capital Markets at JLL Italia. “At #the asset class level, #the excellent performances in #the Office, Retail and Hotel #sectors demonstrate #the renewed interest of investors, also thanks to #the cost of debt, which, although high, shows an apparent decline. #The Living sector also confirms its attractiveness as a destination for use for reconversion operations of assets in other #sectors although with a slower trend than expected, due to #the uncertainty regarding #the application of some urban planning rules in #the city of Milan”.
Offices
Looking at #the results of Q1 2024, in terms of investment volumes, #the Office sector ranks first, with approximately 600 million euros invested, representing approximately 30% of #the total market, recovering compared to 2023, which had seen Logistics as #the first asset class. #The quarter was characterized by an important transaction in #the Rome CBD, #the first in terms of value of #the quarter, and by a significant owner-occupier transaction in Milan.
In terms of interest for investors, Milan remains in #the lead with a strong presence of private capital, which has concentrated above all on core products, limiting their repricing, which has, however, been recorded in other geographies at a European level. #The fundamentals of #the sector remain strong, thanks to #the continuous misalignment between supply and demand, caused by #the lack of prime product. #THE prime returns they remained stable and stood at 4.25% in Milan and 4.5% in Rome respectively.
Logistics
Regarding #the sector Logisticsthe first quarter of 2024 closed with approximately 300 million euros of investments. Although volumes have shown a decline (-19%) compared to 2023, #the sector currently remains one of #the main investment targets, driven by a significant repricing, which brought net prime yields to 5.5%, and by a strong demand on #the occupier side, which led to further growth in prime rents.
Hospitality
Investor interest also in #the sector Hotels & Hospitality remains relevant, with excellent performances in #the main Italian hotel markets. In Q1 2024, transactions reached total volumes of approximately 270 million euros, approximately +50% compared to #the same period in 2023.
Residential and Healthcare
The market of Living & Healthcare recorded investments equal to 50 million euros, considering #the current intended use. To this it must be added that in #the first quarter #the trend of reconversion from other uses to residential was confirmed: in fact, 4 transactions were concluded, for a value of approximately 90 million euros, of properties for tertiary use which will be transformed into residential.
Retail
The Retail reached approx 65 million euros of investmentshighlighting signs of a recovery already underway at #the end of 2023. Investors demonstrate a focus mainly on #the out-of-town sector and in #the quarter there was also an interest on #the Supermarket side, especially from retail operators.
The positive performances of #the sector, including #the high street side, were also confirmed by #the announcement of #the recent acquisition of a property in Via Montenapoleone in Milan, currently being finalised. #The prime net yield stands at 3.9% for High Street and 6.25% for Shopping Centre.
