(Finance) – About 80% of manager interviewees declared that they had positive or neutral expectations in comparison with the others assets classfor the retail sector, and over a third say they have changed their approach and investment strategy, with a propensity for 30% of them to carry out investments for over 100 million euros each in the next 12 months, demonstrating the return of appeal of the sector and the positive performance of retailers within shopping centres.
This is what emerges from the second edition ofEY Retail Property Investments Barometerannual survey conducted by the department Strategy and Transactions Of EYaimed at evaluating the perception and trust in the Retail asset class within the Italian real estate market, with the aim of capturing sentiment regarding investment and management strategies, as well as the future prospects of the sector.
Making use of the collaboration of National Council of Shopping Centers (CNCC), EY involved in the survey the top management of the main real estate companies, fund and real estate asset management companies and financial investors in the sector representing more than 20 billion euros of retail assets owned or managed in Italy, collecting important feedback on the performance of the retail market in Italy, on their perception of the retail asset class and on investment and valorisation strategies.
Comment Mark DaviddiStrategy and Transactions Markets Leader Europe West of EY: “Our survey confirms a significant reversal of trend on the part of investors towards the retail real estate sector, with less than 20% of those interviewed highlighting doubts about its attractiveness. Moreover, approximately 80% of those interviewed recorded an improvement in operational performance through a combination of reduction in vacancies and increase in rents. Investors continue to prefer Retail Parks (39%) and the so-called Big Boxes in their investment choices (32%), favoring core products, but with an opportunistic approach. Among the investment criteria, in fact, the solidity of the user base and the stability of flows are striking. The operators’ awareness of the importance of continuing the path is striking of valorization and transformation of the structures, to mitigate risks and maintain market shares; with the expectation of allocating on average an amount equal to 35% of the value of the assets held to valorization interventions, of which 50% for efficiency interventions energy and ESG”.
The challenges of the sector therefore remain but the general picture and sentiment of investors and center owners remains positive.
Luca LucaroniDeputy Vice President of the CNCC, adds: “The results of the survey confirm the decisive improvement in investor sentiment towards the retail asset class which remains central in the real estate asset allocation strategy also in the 2025 investment plans. Positive performances of retailers, growth in occupancy and higher returns compared to other asset classes are the strong points for those who choose to invest in retail, which has become attractive again in the last year and which we expect to continue to be so in the next 12 months. As an industry, it will certainly be important to continue in the valorization of assets with an innovative approach increasingly guided by digitalization and sustainability, intercepting the requests of investors who prefer structures with strong catchment areas, stable footfalls and energy efficiency plans that allow to reduce operating costs”.