According to CB Richard Ellis, the commercial property market in Italy is showing signs of stabilisation and recovery with high levels of investor interest and activity.

Even the summer period which is traditionally quieter from an investment perspective saw levels of activity reach $1.3bn, over +40% up on the same quarter in 2008. The interest is concentrated on prime property, with the retail sector attracting the highest levels of investor attention. The upturn in both sentiment and activity is backed by increasing investment volumes and in prime yields.

It also points out that secondary markets have been facing more challenging situations such as asset liquidity and sharp increase in yields.

The majority of interest has been coming from equity investors who operate with a low-level of leverage such as Italian pension funds, German open-ended funds and institutional funds.