The COVID crisis impacted the market in Q2, as a result of the general lockdown in most European countries, but some markets have proved particularly resilient, again boosted by e-commerce. Overall, in the 6 major markets in the first 9 months 2020, take-up even increased compared to the same period last year.
Strong resilience despite covid
- Demand is driven by on-line sales
- Supply will increase despite slowdown in the construction of new warehouses
- Rental growth is slowing down
Investment remarkably stable
€23.1 bn in Q3 2020 (year-to date). Q1 was the highest first quarter recorded in the last 15 years (€9.5bn), offset by a low Q2 (€5.3bn) before returning to a high Q3 (€8.3bn).
A bright spot
- Logistics property remains attractive for investors
- Hubs with global exposure are more vulnerable
- Prime yields are likely to stabilize