Italian CRE investments sharply recovered in 2013 compared to the lowest peak in 2012. It outperformed 2012 results with an yearly increase of over 80%. The massive amount of capital globally available has injected new lifeblood for real estate investments also in the peripheral markets like Italy.

The office sector was driven by pre-let transactions in Milan and Rome. Office take-up in Milan slowed down in 2013 with a 6% contraction while Rome take-up was above the yearly average. Development activity is still subdued and completions sharply declined in Milan. The Rome market continues to be characterized by lack of good quality supply. The Office market is still tenants favourable.