Summary and analysis of Milan's current office real estate market conditions.
Insight
11 February 2025
Milan Office Market Dynamics, Q4 2024
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Milan's office market showed resilience in 2024, with about 370,000 sq.m. of space absorbed, and an additional 17,000 sq.m. in subleases. Nearly half of take-up occurred in the Centre and CBD areas.
Grade A assets dominated the market, accounting for about 70% of total take-up and reflecting a strong preference for high-quality spaces. This trend is further evidenced in Q4 by the low level of grade A vacancy rate of 2.5% and increasing prime rents at €730 sq.m. per annum.
Milan remains Italy's primary office investment market, attracting EUR 1.2 billion in 2024. Investors preferred single assets in central locations, focusing on core products. There was also renewed interest in value-add properties for office use and potential conversions.