“Italian real estate had a particularly positive first half, the second half is full of uncertainties”. Interviewed for “MilanoParigiCapitali 2022” by Jole Saggese of Class CNBC and Teresa Campo of Milano Finanza, Prelios Group CEO Riccardo Serrini offers a snapshot of the Italian real estate industry: a sector where “institutional investors made purchases for more than 6.5 billion euro, more than double the investments in the first half of 2021, with the focus on offices, logistics and the hospitality sector. Almost half the investments were in Milan, given the greater liquidity of the market. Now the economic and political changes of the last few months are having a dramatic effect on the short-term outlook.” Riccardo Serrini was joined on the panel discussing “Real estate, new projects in Milan and Paris” by Barbara Cominelli, CEO of JLL Italia, Silvia Rovere, President of Confindustria Assoimmobiliare, Giuseppe Amitrano, Managing Director of Dils, and Alexei Dal Pastro, Managing Director for Italy of Covivio. “We can see an evident slowdown compared with the first half, with the closing of purchases being deferred and financial terms and conditions being renegotiated,” the Prelios CEO continued. “This is the effect of the evident increase in the cost of commodities and energy, and in construction costs, which are also related to an extremely limited offer due to the 110% superbonus; above all, it reflects a lower appetite for risk among investors and lenders. Access to debt and higher borrowing costs are certainly the most significant factors, leading investors to take a more prudent wait-and-see approach. That said, investment in real estate continues to be one of the most interesting areas in alternative asset management as a defense against inflation.” The investment timeline “is absolutely key in real estate and consequently in the categories of investors”, according to Serrini. “This market situation will be of greater benefit to long-term investors, for whom the inflationary effect on rents and capital appreciation has historically offset the rise in interest rates. Over the coming periods, there will be interesting investment opportunities not just in assets, but also in services and asset management.”
Organized by Class Agorà of the Class Editori group, MilanoParigiCapitali 2022 (from Tuesday September 13 to Thursday September 15) is being streamed live on Class CNBC (Sky 507), on the milanofinanza.it website and on Zoom. For information and registration: https://lnkd.in/dy3gRmBg