Italian Logistics Snapshot | Q3 2023

Key takeaways:

• The Italian economy is expected to grow by 0.7% in 2023| In Q2 2023 the Italian economy posted a GDP decrease of -0.4% QoQ while increased by 0.4% YoY. Looking ahead, latest market projections indicate an average GDP growth of +0.7% in 2023. The impact of high inflation and interest rates persists, but there are a few signals of improvement.
• Logistics investment remains subdued| Italian industrial and logistics (I&L) investments volumes experienced a 60% decline in Q1-Q3 2023, in line with wider paneuropean results. Nonetheless, the I&L sector maintains its position as the first asset class in the Italian Real Estate Investment market, in terms of investment volumes (40% out of total), and the asset class remains a target for real investors thanks to its enduring market fundamentals
• Logistics take-up driven by 3PL demand | The Italian logistics occupiers market remained robust in Q1-Q3 2023, +4% YoY and +11% above the 3 years Q1-Q3 average. Demand was driven by grade A assets and by 3PLs operators, benefitting second-hand assets as well due to a sustained supply-demand imbalance, driving rental growth across prime and secondary locations.