The European industrial and logistics real estate market will record a noticeable increase in demand for space in the coming years. Experts forecast an additional requirement across Europe of around 20 million square metres annually until 2035. This upward trend is primarily driven by expanding production capacities, altered supply chains, and new geopolitical realities.
Structural drivers and existing market hurdles
Key drivers of this demand for space include defence, e-commerce, and the healthcare sector. High-performance locations are essential for these industries to maintain security of supply and production.
At the same time, the logistics industry faces substantial constraints. Alongside an increasing shortage of land, regulatory conditions, access to required energy, the altered interest rate environment, and increased construction costs are complicating the delivery of new projects.
- —Continuous additional requirement of 20 million square metres annually across Europe until 2035
- —Significant demand drivers from the defence, e-commerce, and healthcare sectors
- —Tougher project implementation conditions due to land scarcity, construction costs, interest rates, and energy regulations
Resilience as a key theme at the Logistics Real Estate Day
The tasks and opportunities associated with these framework conditions for Germany as a business location are the focus of the Logistics Real Estate Day hosted by the German Property Federation (ZIA) in Berlin. Under the central theme 'Resilience in a volatile world', representatives from the real estate sector, politics, academia, and industry are discussing investment criteria, sustainable standing-asset development, and energy supply as a locational factor.
ZIA Managing Director Aygül Özkan emphasised during the event that logistics properties secure supply chains, enable industrial production, and are increasingly transforming into multifunctional infrastructure and energy hubs. In phases of geopolitical uncertainty, the relevance of modern logistics networks for economic resilience and locational competitiveness becomes clearly evident.
Jan-Hendrik Goldbeck, ZIA Vice President and Managing Partner of Goldbeck, called for faster progress regarding regulatory frameworks during the opening. Future-proof logistics sites are imperative for a competitive economy and secure supplies. While policymakers must create reliable standards, the industry is required to consistently develop properties into efficient energy and technology platforms.
