Italian Office Snapshot | Q3 2023
The Italian Office Market Performance in Q3 2023
07 novembre 2023
- Francesca Fantuzzi
- 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.
- Investors are prudent but Italian office market fundamentals remain solid | Office investments recorded a significant slowdown in Q1-Q3 2023 across EMEA. This trend has been exacerbated by a wait-and see approach and weak global sentiment driven by post-pandemic structural shifts in the way of working. Despite the challenging economic environment, the fundamentals of the Italian office market are confirmed, thanks to a resilient occupiers’ demand.
- Office occupiers' demand still high in Milan and Rome | In Q1-Q3 2023 Rome reached a new record in terms of office take-up (+57% YoY). Milan recorded a slowdown after a very good performance in 2022, but with a positive variation QoQ in Q3 2023 (+17%). Occupiers’ demand is still high in both cities with an increasing focus on sustainability.