The Italian retail real estate market continues its positive trajectory in the first quarter of 2026, building on the strong performance recorded throughout 2025. According to the 13th edition of the Real Estate Data Hub, published by the RE/MAX Italy Research Center and the RYZE Research Department in collaboration with 24MAX Research, retail emerges as the most dynamic asset class within the Italian property market.
Following a year in which total real estate investment volumes reached approximately €13 billion, retail assets attracted €3.8 billion in investments, marking a 46% increase year-on-year and confirming the sector’s growing importance for institutional and private investors.
Out-of-Town Assets Account for the Largest Share of Retail Investment
The Out-of-Town (OOT) segment remains the primary driver of retail investment activity in Italy, accounting for approximately 80% of total sector volumes.
Investors continue to focus on assets capable of combining accessibility, strong catchment areas and resilient income generation. Market activity has also benefited from increased debt capital availability and several large-scale transactions completed during the period.
Among the most significant deals are the acquisition of Scalo Milano Outlet & More by VIA Outlets and the transaction involving Waterfront Mall in Genoa. Together, these operations represent approximately 45% of total retail investment volumes recorded during the period.
High Streets Continue to Attract Retail Expansion and Premium Brands
The High Street segment remains one of the most active areas of the Italian retail market, supported by new openings, flagship developments, store expansions and refurbishment projects.
The physical retail environment continues to attract both established international brands and digitally native operators seeking to strengthen their omnichannel presence through strategic brick-and-mortar locations.
Sportswear, lifestyle and luxury brands remain particularly active, while experiential retail concepts combining contemporary design with historic urban settings continue to gain momentum.
Milan remains the most sought-after destination for retail investment and brand expansion, while regional markets such as Bologna are attracting increasing attention from retailers and investors.
Shopping Centres and Retail Parks Focus on Upgrades and Repositioning
Shopping centres, retail parks and large-format retail destinations have regained investor interest after the post-pandemic adjustment period.
Market activity is increasingly concentrated on dominant assets capable of delivering stable cash flows, strong catchment performance and value-add opportunities through repositioning strategies.
Italy is expected to add seven new shopping centres by 2028. While the development pipeline remains limited, a significant share of future activity will involve redevelopment, extension and modernization projects rather than entirely new developments.
The country now exceeds 1,000 active retail complexes, with vacancy rates ranging between 3% and 8%, indicating a progressively balanced relationship between supply and demand.
Outlet Centres Evolve into Premium Retail and Leisure Destinations
The outlet sector continues to report strong performance indicators and exceptionally low vacancy levels.
Current investment strategies prioritize expansion, regeneration and repositioning of existing assets rather than greenfield developments. Significant initiatives include the expansion of Sicilia Outlet Village, the consolidation of Torino Outlet Village and the redevelopment of the former Soratte Outlet into the new Roma Outlet Village.
At the same time, outlet centres are evolving from traditional discount channels into premium retail destinations featuring curated assortments, higher-quality environments and broader lifestyle offerings.
Shopping, dining and entertainment are becoming increasingly integrated, while sustainability initiatives and circular economy concepts, including second-hand retail formats, are gaining relevance within the sector.
The growing integration between physical and digital retail channels is also encouraging the entry of digitally native brands into outlet environments.
Prime Rents and Yields Show Signs of Stabilization
The ongoing wave of store openings and refurbishment projects continues to support leasing activity across Italy’s leading retail destinations.
Milan and Rome remain the strongest prime retail markets, demonstrating resilience in rental performance and sustained investor demand.
Prime yields have largely stabilized, while selective yield compression may emerge for core assets characterized by established locations, strong footfall, high-quality tenant mixes and long-term indexed lease agreements.
Prime rental values continue to strengthen or consolidate at the highest market levels, reflecting demand that is increasingly concentrated on high-performing retail assets with strong visibility, accessibility and proven commercial performance.
Overall, the Italian retail real estate market appears increasingly driven by quality, selectivity and experience-led retail formats, reinforcing its attractiveness for investors and occupiers alike.
Credits
Source: Real Estate Data Hub 2026 – RE/MAX Italy Research Center, RYZE Research Department and 24MAX Research.