Brookfield Properties, Savills and Analytiqa have published the fifth annual survey of the European real estate logistics market. The analysis is based on a survey of 715 investors, developers and users across Europe.
Investors and developers with growing confidence
According to the authors, 46 percent of investors rate market conditions as more favorable than the previous year. 56 percent expect an increase in investment volume in the coming twelve months. Developer activity is also up:
36 percent plan speculative construction of new space, an increase of 12 percentage points compared with the previous year.
Cautious expectations among users
While investors and developers are betting on a recovery, users remain cautious. According to the survey, 41 percent expect an increasing demand for warehouse space in the coming year, which corresponds to a rise of 12 percentage points from the previous year. At the same time, however, 57 percent have scaled back
their expansion plans.
Discrepancy between demand and supply
Two-thirds of users prefer medium-sized units between 5,000 and 9,999 square meters. Developers, however, focus mainly on spaces above 10,000 square meters. Only 25 percent of developers are constructing speculative buildings in the size preferred by users.
Regional focus
Western Europe remains, according to the survey, a central market. Users plan their expansion primarily in Continental Europe, with a clear focus on Germany and France.
ESG and
Artificial Intelligence as defining trends
According to the study authors, 88 percent of users rate ESG regulations as the most significant structural change for their strategy. Artificial intelligence is also gaining influence: 82 percent see it as a transformative factor, up 25 percentage points from the previous year. More than a third of respondents have already invested in systems for predictive optimization and analysis, and almost half plan further investments in the coming two years.(av)
