Italian Office Snapshot | Q4 2023
The Italian Office Market Performance in Q4 2023
- Francesca Fantuzzi
Key takeaways:
The Italian economy is expected to grow by 0.5% in 2024| Looking ahead, latest market projections indicate an average GDP growth of +0.5% in 2024. The impact of inflation is slowing down and there are signals that interest rates will fall towards the end of 2024.
Investors are prudent but Italian office market fundamentals remain solid| Office investments recorded a significant slowdown in 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 2023 Rome reached a new record in terms of office takeup (+70% YoY). Milan showed a slowdown (-15%) after a very good performance in 2022, but with a positive variation QoQ and YoY in Q4 2023 (respectively +40% and +10%). Occupiers’ demand is still high in both cities with an increasing focus on sustainability.
