German logistics property market returns to pre-pandemic levels in early 2025

The German logistics real estate market recorded approximately 1.7 million square metres of new construction in the first half of 2025, marking its lowest half-year result in five years, according to figures released by consultancy Logivest. The data reflects projects as measured from the date of their ground-breaking ceremonies.

In the first quarter, new logistics space reached around 850,000 square metres, with the second quarter contributing just under 830,000 square metres. Logivest noted that while recent years saw half-year volumes exceeding two million square metres, the current level aligns with figures last observed before the COVID-19 pandemic. “We have simply returned to pre-coronavirus levels,” said Kuno Neumeier of Logivest, adding that the market is facing significant competitive pressure due to approximately three million square metres of grey market supply and more than eight million square metres of vacancies in existing properties.

Swabia emerged as the leading logistics region for the first half of 2025, a notable change from its usual position in the lower tier. The region recorded around 210,000 square metres of new space, already more than double its result for all of 2024. A significant driver was Dietz AG’s built-to-suit project in Langenau, delivering about 63,000 square metres for the winkler group. Additionally, Frasers Property Industrial’s speculative development in Günzburg, comprising around 50,000 square metres across several halls, contributed to Swabia’s rise.

Berlin ranked second among logistics regions, reporting approximately 190,000 square metres of new space, nearly doubling its 2024 figure. Major projects include the Panattoni Park Berlin Ost II in Grünheide, offering around 55,000 square metres, and MLP Group’s speculative development in Spreenhagen with nearly 35,000 square metres. Duisburg/Lower Rhine placed third with about 175,000 square metres, featuring the MLP Business Park Schalke as the largest single development in both the region and the country, covering nearly 72,000 square metres.

While Munich and Mitte D fell out of the top ten, the Upper Rhine region maintained its position in the upper tier, driven by Logad GmbH’s project in Neuenburg for Swiss online retailer Galaxus, adding around 65,000 square metres and expanding Galaxus’s total site to approximately 90,000 square metres.

The light industrial sector showed notable growth, reaching approximately 310,000 square metres in the first half of 2025, an increase compared to the previous year. The largest light industrial project is a 50,000 square metre facility developed by Körber Technologies in Hamburg. Logivest began tracking the light industrial segment in 2024 to reflect its growing significance in the market.

Neumeier observed that the rise in light industrial developments indicates Germany’s sustained attractiveness as a production location. However, future trends will depend on global economic conditions and policy decisions at both national and European levels.