Italy saw less than EUR 100 mln of retail deals closed so far this year, according to a new research reported published by Jones Lang LaSalle. The figure compares to over EUR 900 mln registered in the same period a year before.
Italy saw less than EUR 100 mln of retail deals closed so far this year, according to a new research reported published by Jones Lang LaSalle. The figure compares to over EUR 900 mln registered in the same period a year before.
'A feeling of a strong gap between the independent appraisal values and the investment market continues to exist,' said Davide dal Miglio, head of retail at JLL Italy. 'This gap is destined to close by the end of the year to allow the entry of new players to the investment scene.'
In the first six months of the year, the Italian market saw just eight new mall openings compared to almost double (17) in 2011. The total retail stock in the country currently amounts to 17.5 million m².
The difficult market conditions have exacerbated the gap between prime and secondary assets, according to the broker.
A combination of difficult financing market conditions and the uncertainty related to Italy's sovereign debt continues to negatively affect the property market, added Dal Miglio. 'The foreign investors which remain in Italy have changed risk profile respect to the recent past. The focus is now exclusively on prime shopping centres, in Northern Italy, and dominant in their catchment areas.'
