Where do you see Italy in the real estate investment cycle?
At the end of a long tunnel. We start to see the light but several external events are able to condition the RE market (Greece, Crimea, US bubble..).
Do you see more international investors becoming more active? What do they look for in Italy?
70% of the CRE transactions are originated by international investors. Rome and Milan for offices. Retail throughout Italy. Logistics is growing due to the IT commerce. Hotel in Milan, Rome and art’s cities. No developments. Several investors are opportunistic and are looking for portfolios owned by Italian entrepreneurs in a difficult moment.
Assuming there’s no ‘Bad Bank’ created, what’s the future for NPLs?
Credits/properties will be sold at discount prices. Banks have sufficient loan loss provision now.
Should investors continue to look at Milan & Rome? And which are the most interesting secondary cities?
Yes, they should continue to look more at Milan than at Rome (Rome is a market with lower transparency and too many public tenants). Turin, Verona and Bologna (logistic and retail); Florence and Venice for hotel. Problem in the south even if there are higher returns.
Retail: How do you see retail format evolving in the next 10 years?
Retail will be dramatically conditioned by the IT commerce. It is necessary to find other formats and new anchor tenants.
Hotels: Will the sector flourish finally in the short term and where?
Luxury sector. Milan, Rome, Venice, Florence. New chains of Chinese Hotels.
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