| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 1.63 Billion |
| Market Size (2030) | USD 2.05 Billion |
| CAGR (2025 - 2030) | 4.67 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Italy Office Real Estate Market Analysis
The Italy Office Real Estate Market size is estimated at USD 1.63 billion in 2025, and is expected to reach USD 2.05 billion by 2030, at a CAGR of 4.67% during the forecast period (2025-2030).
- In the first half of 2024, the office sector reclaimed its position as the leading asset class, attracting investments totaling USD 841.76 million as reported by Industry Association. This surge mirrored the market's dynamic nature, a trend also evident in the office market.
- This significant uptick underscores the market's dynamic nature, especially in major urban centers like Milan and Rome, which consistently draw both domestic and international investors. The ongoing recovery in these cities highlights their pivotal role in the broader Italian real estate landscape, signaling a crucial juncture for the office sector.
- Office spaces are evolving into multifunctional hubs for collaboration, networking, and brainstorming, with amenities gaining heightened importance. Consequently, property management is becoming increasingly relevant, emphasizing cost-effectiveness and responding to rising tenant demands.
- Tenant preferences are driving rental growth, with Grade A properties fetching premium rents over their lower-grade counterparts. For example, prime rents in Milan's CBD Duomo reached USD 736.54/sqm in the latter half of 2023 and held steady in Q1 2024, with optimistic growth prospects for the year as reported by Industry association In Q1 2024. This highlights the increasing value placed on high quality office environments that meet contemporary business needs.
- Yet, concerns are mounting over potential increases in vacancy rates as new inventory floods the market. Industry association reports a slight uptick in Milan's vacancy rate, now at 9.5% in 2024. While the influx of newe developments is necessary to meet demand, there is apprehension about oversupply affecting rental dynamics and occupancy levels, Investors are closely monitoring these trends to assess their impact on market stability and future investment oppurtunities
Italy Office Real Estate Market Trends
Office Leases and Investment Focus in Milan and Rome
In Q1 2024, Milan saw office lease transactions totaling around 93,000 sqm. This figure notably includes the recently completed Unipol Tower in Porta Nuova, which alone accounted for 15,000 sqm as reported by Industry Association.
Rome's office take-up reached approximately 32,000 sqm. This figure was tempered by a scarcity of significant deals during the Q1 2024. Nonetheless, reports by Industry Association also highlighted several key transactions, each ranging between 3,000 and 6,000 square meters.
According to Spotlight on H1 2024 Office Market Trends by Industry Association, Milan's office market showcased resilience. The occupational market remains robust, with a mere 2% vacancy rate for grade A office buildings. Looking ahead, the market anticipates an influx of 860,000 sqm of new supply by 2027, with 30% already pre-let. Milan's office take-up in Q1 2024 not only hit the 93,000 sqm mark, but also represented a 10% increase from the previous year 2023, continuing a trend of two years at record levels.
Grade A deals in Milan constituted a significant 73% of the total take-up, surpassing the average of the past five years from 2024. Given the near-zero availability and dynamic occupier demand, it's evident that landlord-friendly conditions for grade A assets will likely endure in both Milan and Rome.
In conclusion, the office markets in Milan and Rome demonstrate strong resilience and growth potential. Milan, in particular, continues to attract significant investments and maintain low vacancy rates, while Rome shows promise despite fewer large transactions. The focus on high-quality buildings will likely sustain the demand for grade A assets in both cities.
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Developments in the Italian Office Market
Office sales prices are on the rise, propelling the market forward. Major cities like Milan, Genoa, Turin, and Rome remain pivotal hubs for business activities, witnessing a shift in demand from historic premises to modern offices. This evolving demand is further bolstered by a preference for high-quality, green-certified buildings that resonate with sustainability objectives.
The office sales market is rebounding. In Milan, 2024 central and well-connected areas see office sales prices averaging between EUR 4,000 and EUR 5,000 (USD 4,208.80 to USD 5,261.00 per square meter) per square meter. Rome's prices fluctuate more, averaging EUR 3,000 to EUR 4,000 (USD 3,156.60 to USD 4,208.80 per square meter) per square meter in its most prestigious locales. Genoa's office prices lag behind other major Italian cities, averaging EUR 1,560 per square meter (USD 1,641.43 per square meter), with the Albaro area peaking at EUR 2,660 (USD 2,798.85 per square meter) per square meter as reported by Industry Association.
Several factors fuel Genoa's office space demand, notably the old port's redevelopment and the city's rising status as a tourist and commercial hub. Turin witnesses a surge in demand for small, flexible offices, mirroring the trend towards hybrid work. Companies prioritize spaces that are functional and adaptable. This optimistic trend is underpinned by heightened investor confidence, drawn by the Italian real estate market's stability and the promise of attractive returns.
Simultaneously, the office rental market is witnessing increased contract flexibility and innovative solutions. The pandemic has fast-tracked the adoption of coworking practices and flexible spaces, as companies aim to trim fixed costs and adjust to evolving operational modes.
In Milan, 2024 central office rents hover between EUR 400 and EUR 600 (USD 420.88 to USD 631.32 per square meter) per square meter annually. Rome's central areas see slightly lower rates, averaging EUR 300 to EUR 500 (USD 315.66 to USD 526.10 per square meter) per square meter per year. These figures, while indicative, can fluctuate based on location, building quality, and offered services. Genoa's office market, buoyed by the historic center's redevelopment and the rising interest in areas like the Waterfront, sees prices averaging EUR 300 to EUR 500 (USD 315.66 to USD 526.10 per square meter) per square meter annually as reported by Industry Association.
In conclusion, the Italian office market is experiencing significant growth and transformation. Major cities are adapting to new demands for modern, sustainable office spaces, driven by both sales and rental markets. Investor confidence remains strong, supported by the stability and potential returns of the Italian real estate market.
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Italy Office Real Estate Industry Overview
The Italian office real estate market is highly fragmented, with the presence of both global players and regional players, and the competition in the market is very high. Some of the major players in the market are Knight Frank, Astaldi, Webuild, CBRE Italy, and others.Companies are positioning themselves to address future demands in major cities, with numerous firms venturing into the market to seize additional opportunities.
For instance, In 2024 as reported by Industry Associations, Turin's office rental market is vibrant, with demand centered in both the city center and its suburbs. City center offices, priced at approximately 400 EUR (420.88 USD approximately) per square meter, are sought after for their strategic location and proximity to essential services. Meanwhile, suburban areas, boasting modern office buildings at more affordable rents, are witnessing a surge in demand. Notably, urban redevelopment projects are drawing businesses to the Porta Susa and Lingotto areas.
Italy Office Real Estate Market Leaders
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Knight Frank
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Savills plc
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Engel & Volkers Commercial
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CBRE Italy
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JLL Italy
- *Disclaimer: Major Players sorted in no particular order
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Italy Office Real Estate Market News
- April 2024: The inauguration of an office in Milan marks a significant milestone in Eiffel Investment Group's global expansion. This strategic move aims to strengthen Eiffel Investment Group's presence in Italy, supporting local SMEs in their growth initiatives and playing a crucial role in accelerating the country's energy transition.
- April 2024: DIF Capital Partners, a prominent global infrastructure fund manager, has inaugurated its twelfth office in Milan, Italy. This strategic move not only focuses on investments within Italy but also enhances DIF's ability to cater to its expanding Italian investor clientele.
Italy Office Real Estate Industry Segmentation
Office real estate involves constructing buildings intended for leasing and selling to companies across various sectors. This report offers a comprehensive analysis of the office real estate market, emphasizing market insights, dynamics, technological trends, and government initiatives. Italy's Office Real Estate Market is Segmented by Key Cities (Rome, Milan, Naples, Turin, and Other Cities). The report offers market size and forecasts for the Italy office real estate market in value (USD) for all the above segments.
| By Key Cities | Rome |
| Milan | |
| Naples | |
| Turin | |
| Other Cities |
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Italy Office Real Estate Market Research FAQs
How big is the Italy Office Real Estate Market?
The Italy Office Real Estate Market size is expected to reach USD 1.63 billion in 2025 and grow at a CAGR of 4.67% to reach USD 2.05 billion by 2030.
What is the current Italy Office Real Estate Market size?
In 2025, the Italy Office Real Estate Market size is expected to reach USD 1.63 billion.
Who are the key players in Italy Office Real Estate Market?
Knight Frank, Savills plc, Engel & Volkers Commercial, CBRE Italy and JLL Italy are the major companies operating in the Italy Office Real Estate Market.
What years does this Italy Office Real Estate Market cover, and what was the market size in 2024?
In 2024, the Italy Office Real Estate Market size was estimated at USD 1.55 billion. The report covers the Italy Office Real Estate Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Italy Office Real Estate Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Italy Office Real Estate Industry Report
Statistics for the 2025 Italy Office Real Estate market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Italy Office Real Estate analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
