The Italian real estate sector stands to benefit greatly from post-pandemic recovery as international investors seek to ‘invest in bricks’, as Italians say.

The logistics market has become one of the leading sectors, given Italy’s position as the gateway between the Middle East, North Africa and the European Union. Transportation and warehousing attract €11bn a year in inward investment , according to FDI Markets, and with a thriving economy and significant growth in digital commerce, there is intense activity in the sector.

Data centres are another driver of growth, with more than 100 clusters throughout Italy. The country has attracted investments from major cloud service providers including Amazon, Vodafone and Microsoft, which is spending $1.5 billion to create its first data centre region in the country. The pandemic created a surge in demand for cloud services, particularly from businesses, while the rollout of 5G is further increasing consumer demand.

The residential property market is also buoyant , with a combination of lifestyle reasons and tax incentives driving unprecedented inward investment. Having made the transition to hybrid and home working, business leaders are spending more time in popular areas such as Tuscany, Lake Como and Sardinia, buying up country villas and castles. City-centre condominiums, particularly in Venice and Milan, are also popular, with average prices increasing in 2021 .

Residential building projects have helped to drive a strong rebound in construction, which contributes around 8 per cent of Italian GDP . While supply chain issues have affected the industry, it stands to benefit from almost half of the recovery funding allocated by the government.