In the first half of 2024, the Italian logistics property market demonstrated overall stability, marked by cautious optimism. This is according to the Research Centre at Remax Italy, which explained that despite challenges posed by tighter credit conditions, demand for logistics space remained strong, and investments in the sector reached €474 million, of which €184 million was concentrated in the second quarter. Availability rates hit an all-time low, dipping below 1.5%, while the gross yield for high-quality properties (prime yield) remained stable at 5.5%.
The total take-up reached 1.5 million square metres, with demand primarily driven by the pharmaceutical, food, and manufacturing sectors. These figures, which were highlighted in the tenth edition of the Real Estate Data Hub - compiled by the Research Centres of Remax Italy, Avalon Real Estate, and the Study Office of 24Max - confirm a shifting landscape where new trends, such as the focus on sustainability, reshoring, and the rise of data centres, are shaping the sector.
Reshoring dynamics and just-in-case inventory strategies are influencing the geographical distribution of warehouses and production activities. These shifts are creating a need for larger and more flexible storage spaces, spurring property development even in secondary areas of the country, such as Southern Italy. The ports of Bari, Naples, and Gioia Tauro, along with the inland hubs of Nola and Marcianise-Maddaloni, are becoming increasingly attractive to global investors.
As for rental prices, the pharmaceutical, food, and manufacturing sectors continue to lead demand. In Milan, prime rents stand at around €67 per square metre per year, while recently developed last-mile logistics properties command an average of €110 per square metre. Other Lombardy provinces record values around €55. In Northern Italy, Verona maintains levels similar to those in Lombardy, while Turin and the Parma-Modena-Reggio Emilia corridor range between €50 and €55. In Central Italy, Florence stands out with €75 per square metre, while Rome fluctuates between €65 and €105, depending on the type of logistics.
Milan, Rome, Padua, and Genoa remain strategic hubs for Italy's logistics sector. Milan continues to be one of the most sought-after areas, driven by the demand for sustainable and technologically advanced properties. In Rome, last-mile logistics are thriving, supported by the growing need for rapid deliveries. Padua, as a hub for the North-East, shows steady growth with rents between €58 and €62 per square metre. In Genoa, urban regeneration and sustainable development are enhancing the city's role as a port hub, although growth remains less dynamic compared to Milan and Rome.
