Real estate market: Hospitality sees the greatest growth in Italy

The Italian institutional real estate market is recovering, according to data from BNP Paribas Real Estate: the first nine months of 2025 ended with approximately €7.5 billion in investments, a level approximately 13% higher than the Q1-3 2024 figure, a year already up compared to the previous one. The volumes recorded were also found to be increasing on a rolling 12-month basis (+18%). The result also shows a growth compared to the average of Q1-3 of the last 5 and 10 years (+14 and +19% respectively).

Leading the volumes in the first 9 months of 2025 were the Retail and Office sectors, with 29% and 23% respectively, followed by Hospitality with 20% of total ytd volume.

A note of merit for the Hospitality sector, where the growth recorded in the first nine months of the year was the most significant among the asset classes tracked: +91% compared to the same period in 2024, and +56% compared to the five-year average, despite the relative decline in Q3. 

The Alternatives sector, which includes some emerging segments, also contributed significantly to investment volumes, up +69% compared to 2024. Within this asset class, the leading destination is Living, followed by Healthcare.

The volumes achieved by the Retail asset class translate into 16% year-on-year growth, rising to 108% compared to the five-year average, confirming the dynamism of the sector, following a sustained recovery in interest, after experiencing contractions in previous years. In the Office sector, volumes recorded at the end of Q3 2025 are also growing y/y, although substantially in line with the 5-year average (-2%).

Logistics, which contributed 14% of total volumes, was characterized by a -23% decrease compared to Q1-3 2024, although the total recorded in the first 9 months of the year remains in line with the 10-year average for the sector.

Alessandro Belli - Head of Hospitality at BNP Paribas Real Estate Advisory: “Hospitality remains a particularly dynamic and attractive asset class, both for domestic and international investors, institutional investors as well as family offices and owner operators. Interest extends throughout the region, with 69% of investments outside Milan and Rome, in leisure destinations and secondary cities. In addition to the prevailing operations of requalification and conversion of existing assets (value add), the interest of long-term capital is growing, also ready to seize the opportunities offered by assets at the end of the valorization cycle."

Article from: MONITORIMMOBILIARE.IT