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During this period, Italy too went through an extraordinary moment with the
domestic Real Estate market being transformed quickly as ever before
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Italian Real Estate market evolution 2/3
During these years several innovations took place in financial instruments, magnifying
investment opportunities and raising foreign investors’ interest:
9 an increasing number of real estate assets’ spin-offs took place to retain a core
business;
9 alliances and JV between foreign and domestic Investors/operators were set up;
9 the first Real Estate funds under Italian law were launched.
2
Italian Real Estate market evolution 3/3
Real Estate funds have been one of the instruments that mostly contributed to the
development of the Italian real estate market whilst increasing market transparency.
Their success and quick diffusion was mainly related to their status of tax efficient
vehicle, as well as of a financial instrument subject to a well defined regulatory frame.
NAV trends of real estate funds in the major European countries (2000=100)
Over the 2000–2010 period Italian Real Estate funds have shown (and are still
showing) an interesting trend with a compound annual growth rate of ca. 31% 4
3
Cross-border investments in the
1/3
Italian Real Estate market
This market trend evolution, together with the introduction of the Euro, was both the cause
and effect of the opening of the domestic market to foreign investments, rendering the
Italian market less provincial.
Transparency score trend of the Italian real estate market
Over the last decade, the country has risen its competitiveness in several factors and
the Italian property market has grown much more transparent in terms of activities,
players in the market and financial instruments used
4
Cross-border investments in the
2/3
Italian Real Estate market
In this context the Italian Real Estate market has been gradually clearing the ground for
the arrival of cross-border investors, granting the expansion of new players such as
merchant banks, investment funds, pension funds, specialist finance companies,
securitizers, developers and asset managers, improving the sector and its overall
transparency.
Italy cross-border investments by purchaser origin (%)
The main foreign players operating in Italy are primarily represented by Middle-
Asian investors, followed by France Real Estate funds and German Open funds
5
Cross-border investments in the
3/3
Italian Real Estate market
Cross-border Investors remain focused on high quality assets, mainly in the retail sector
6
Italian Real Estate market during the crisis phase 1/4
-70%
7
Italian Real Estate market during the crisis phase 2/4
-51%
Source: DTZ.
8
Italian Real Estate market during the crisis phase 3/4
The main reasons that have been driving the different shortfall of the crisis on the Italian
Real Estate market, contributing to its greater resilience, are the following:
9 Italian Real Estate market has not been experiencing an unsustainable growth
rate during the past cycle…
10
Source: Economist.
9
Italian Real Estate market during the crisis phase 4/4
9 … the decrease in investment volumes, registered during 2009, was primarily driven
by a reduction in cross-border investments, while domestic equity Investors, less
affected by the economic crisis, haven’t stop their investment activity.
2008 – 2009 investments volume (%)
2008 2009
11
Source: DTZ.
10
Perspectives for the Italian Real Estate market 1/2
By the end of 2009 and moving into 2010 (after about 2 years of falling
investments), the global economy and the real estate market seems to have
passed its worst moments.
In this context, a general review of the approach of the major investors has
occurred, focusing on a “back to basics” approach.
11
Perspectives for the Italian Real Estate market 2/2
Considering the current market trend, the Italian real estate cross-border investments could
be driven by the following factors:
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Fondi Immobiliari Italiani Sgr S.p.A.
Via Crescenzio,14
00193 Roma