Office real estate is particularly popular with investors, both domestic and foreign, as it generally provides secure and large returns, especially in big cities. Office real estate investments in Italy accounted for more than half of all investments in the non-residential real estate sector in the country during the first quarter of 2019. Milan and Rome appear to be the most dynamic markets for office real estate among Italian cities, boasting the largest number of transactions and attracting the vast majority of investments in the office real estate sector. Indeed, Italy's two largest cities account for nearly 90 percent of total investments in the sector.
Due to generally higher quality of living and lower costs, however, small cities can be attractive too, both for employers and employees. The city of Bologna, for instance, saw the largest increase in office real estate transactions among Italian cities in 2019. The price of office spaces is generally higher in larger cities, but that is not the case in Italy. Milan and Rome, in fact, appeared second and third respectively in a ranking of the most expensive Italian cities for office space. This list was led by Venice, where office units could fetch on average 3.8 thousand euros per square meter in 2019.
