The real estate market for logistics, retail and industrial use remains a cornerstone of Italy’s real economy and a key magnet for investment, confirming itself as one of the most resilient and best-performing sectors in the national landscape. This is evidenced by the figures released by consultancy firm JLL for the first half of 2025, which report total investments of around €800 million—equal to 15% of the national total—with an annual increase of 66%. These results highlight investors’ continued interest in a strategic asset class, even in a context of macroeconomic uncertainty and more selective allocation strategies.
The momentum was largely driven by a strong first quarter, during which several significant deals were finalised, including two property portfolios each exceeding €200 million in value, together accounting for 70% of total volumes. The remainder of the transactions fell below the €50 million mark. The decline in prime net yields—now at 5.4%, down 10 basis points from the previous quarter—confirms growing investor confidence in the strength of the Italian market. Despite a cautious and selective approach—focusing on build quality, geographic location, and asset enhancement potential—interest remains widespread across the risk spectrum, with Core+, Value Add and opportunistic capital particularly attracted to assets offering room for improvement or located in strategic areas.
From the occupier perspective, take-up reached approximately 950,000 square metres, with demand remaining solid despite a more cautious approach to strategic expansion decisions. The slowdown in take-up compared to the record-breaking previous years appears to be a natural correction, partly due to the temporary absence of large-scale transactions: over 70% of contracts signed in the semester involved spaces under 25,000 square metres. Northern Italy remains the sector’s main hub, accounting for 73% of total leasing activity, followed by Central Italy (17%) and the South (10%). Third-party logistics operators continue to dominate demand, representing 50% of the total, followed by retail (24%) and a growing share from the manufacturing sector (20%).
Prime rents for grade A properties have increased in key cities such as Milan (€70/sqm), Rome (€69/sqm) and Bologna (€67/sqm), while remaining stable in Veneto (€58/sqm) and Turin (€50/sqm). Rents for last-mile logistics remain high—around €110/sqm in Milan and Rome—with even higher peaks in the presence of bespoke fit-outs. The vacancy rate for next-generation buildings has risen slightly to 4.5%, a level still considered physiological. Development activity remains strong, with over one million square metres completed in the first half of the year, more than half of which built speculatively, reflecting broad confidence in future space absorption.
“The compression of prime yields reflects renewed confidence in the Italian market, which continues to attract capital thanks to the sector’s resilience and growing demand for quality assets,” explains Elena Di Biase, head of Logistics Capital Markets at JLL Italy. The outlook for leasing in the second half of the year is also positive. “Following a physiological contraction in take-up in the first half, we expect a rebound in the second part of 2025, supported by the many projects nearing completion and ongoing tenders,” adds Renato Loffredo, head of Logistics Agency & Data Centre at JLL Italy.
