Investment in Italian retail property assets have fallen in 2010 to a historic low, however they are on track to recover in 2011 according to Jones Lang LaSalle.

Davide Dalmiglio, head of retail investment at JLL, said: “Despite returning market confidence and encouraging retail sales figures, as little as €250m of retail product was transacted in the market so far this year, if we do not take into account the Porta di Roma transaction, which was an extraordinary event. However, we expect that the higher level of investor interest will translate into a more active market in 2011.”

Transactions are roughly 30% down in 2010 on the same period of 2009, with many transactions under negotiation over the course of 2010, although just a few were successfully completed, while a vast majority fell through during the due diligence process according to Dalmiglio.
“The shopping centre segment is becoming more and more solid, due to increasing rent levels and occupancy rates. However, there is a lack of investors able to effectively close deals.” Dalmiglio noted.