Italian Office Snapshot | Q1-Q4 2022
The Italian Office Market Performance in 2022
- Francesca Fantuzzi
- Carlo Cocuzzo
- Claudia Solarino
- The Italian economy shows some resilience| GDP growth posted a +0.5% in Q32022, mainly driven by domestic demand.
- Investors remain prudent but office confirmed to be the first asset class in terms of volumes| Looking ahead, risks to GDP growth are skewed to the downside because of tightening monetary policy.
The Italian economy held up surprisingly well in 2022 despite high global uncertainty and rising energy prices: carry-over annual GDP growth now stands at +3.9%.
The office sector confirmed to be the first asset class for Capital Markets investors in 2022. Milan continues to drive the volumes, representing around 65% of the total.
Office leasing side increased in take-up both in Milan and Rome: corporate occupiers will continue to seek to ensure flexibility within new leases, while employees will also seek a measure of flexibility in their working lives. Milan reached 506,000 sqm in 2022, up by +42% YoY, recording one of the best performances compared to the other European markets. Take-up in Rome increased as well, totalling around 150,000 sqm (+5% YoY). In 2023 We expect a market-wide trend in corporate consolidations, space rationalization, prime space relocations and increasing focus on 2030 sustainability goals as deadline approaches.