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2016 is expected to be an exceptional year for real estate investments in Europe following an expansion of 48% of businesses in 2015, a trend set to continue this year. MIPIM is the primary real estate event for Western Europe: with over 21,000 participants from 89 countries, MIPIM, hosted in Cannes, is set to bring in over 50 institutional investors, each of which with € 500million and over of allocated capital ready to invest.
Regione Lombardia, in collaboration with Invest in Lombardy, is attending MIPIM with its own stand within the Italian Pavilion. The Region is there to present real estate investment opportunities, with an international relevance and a significant ROI, identified together with Invest in Lombardy, in line with the expectations of the operators attending the fair. The scope of the projects includes new residential buildings, urban requalification, new industrial complex buildings and university campuses. The projects involve each of the five real estate sub-sectors: office, retail, industrial and logistics, residential and hospitality, which Lombardy has a distinct competitive advantage over.
Why invest in Lombardy? Lombardy is a thriving, diversified and attractive real estate region for any kind of real estate investor. The region accounts for 22% of the national GDP, the highest in Italy, and holds one sixth of the country’s population, making it the second most densely populated region. Lombardy’s growth has been going steady with the region’s office sector leading in both employment and output, with 30% of total leasing activities coming from international companies. Milan, as the business and economic capital of the country, results as the Italian Prime city by rental value as well as the Lombardy’s with a prime rental value of € 550/sqm/year and the lowest vacancy rate in the country with a maximum vacancy of 9 months. From an international point of view, Milan is in the top 20 cities by rental values rivaling that of San Francisco.
The retail sector strengthened in 2015 throughout Italy, with Lombardy ranking as one of the best performing regions by a positive trend of 5.80%. In particular, Lombardy holds 14.6% of the total retail sector of Italy. With Milan at the center of the design and fashion world, retail space can demand up to 8 times the amount of other big cities around the world. The Industrial and logistics sector in Lombardy is the strongest in Italy with 19.5% of the warehouse space holding 20% of the warehouse stock of the country. In fact, the majority of transactions, from a regional distribution point of view, is registered in Lombardy, which alone represents approximately the 28% of the national share. The residential sub-sector of Lombardy is one of the strongest of the five sub-sectors, hosting 20% of the country’s total number of residential transactions. Hospitality is Italy’s strongest real estate sector and very attractive for hotels due to the country’s steady amount of tourism. In particular, 57.5% of Lombardy’s tourists have international provenance and are attracted to the region’s outstanding destinations, like the city of Milan, one of the favorite shopping destinations in the world, and the other appealing venues and landscapes (old towns, lakes, mountains, etc.) all across the region.
With so much to offer in the region, Invest in Lombardy is looking forward to welcoming you at MIPIM 2016.
(*Data used taken from the Real Estate sector report made by Invest in Lombardy in collaboration with its partner World Capital*)