Real Estate for a changing world

REVIEW - LOGISTICS MARKETS IN EUROPE - H1 2025

Category
Sharing
Tools

Take-up

Over H1 2025, the market remained at a low level in the leading European markets compared to H1 2024. In a context of slow economic activity and strong political uncertainties, there are great disparities within Europe. 
 

Rents

Market slowdown is easing the pressure on rental growth. Prime rents rose by 3.7% during Q2 2025 (y-o-y) in a panel of 46 markets covering 22 countries. Some cities continue to see rents expand but overall, the market slowdown in 2024 and early 2025 resulted in limited rental growth.
 

Investment

The investment market is picking up. 
Improved general market conditions compared to 2023 and 2024, stimulated by the return of portfolios in H1 2025.
 

Prime Yields

Logistics prime yield expansion over the past two years has ceased with moderating inflationary pressure and long-term government bond yields hitting a ceiling.
Over the past twelve months, prime yields have adjusted gradually towards stabilisation in all European countries. They decreased by just 3 bps over the last quarter in Europe.
 

 

REVIEW - LOGISTICS MARKETS IN EUROPE - H1 2025
PDF - 2.5Mo