European logistics investment rises 14% in 2024, indicating further growth

Investment in the European logistics sector increased by 14% in 2024, reflecting strong demand and continued expansion in the market. According to a report from Savills, total industrial and logistics take-up across Europe reached 27.5 million square meters during the year, signaling resilience in the sector despite broader economic uncertainties.

The rise in investment is driven by sustained demand for logistics space, fueled by the ongoing growth of e-commerce, supply chain diversification, and increased nearshoring efforts. Many occupiers are seeking modern, energy-efficient warehouses to optimize distribution networks and reduce operational costs. This demand has led to increased development activity, particularly in key logistics hubs across Western and Central Europe.

The market outlook remains positive, with further growth expected in 2025. Investors are increasingly attracted to logistics assets due to their stable returns and long-term growth potential. Despite economic challenges such as inflation and interest rate fluctuations, the sector continues to be a key focus for institutional investors seeking defensive real estate opportunities.

Savills' findings highlight that the logistics sector's expansion is set to continue, supported by structural shifts in supply chain management and ongoing demand from occupiers. Market participants are closely watching economic conditions and policy changes that could impact investment trends, but the overall trajectory for European logistics remains strong.