Report: German logistics real estate booms in 2024 with 4.4 million square metres built

The logistics real estate market outperformed expectations in 2024, with new construction volumes reaching an impressive 4.4 million square metres, according to data from Logivest’s annual logistics real estate seismograph. This marks a 15% increase compared to the previous year. The measurement, taken at the groundbreaking ceremony, highlights a strong year for the sector despite broader economic challenges in Germany. The second quarter stood out as the most active, contributing nearly 1.4 million square metres of new construction and featuring several significant projects.

One of the year’s largest developments is the Mercedes-Benz logistics centre in Bischweier, Rastatt district, spanning 130,000 square metres on a brownfield site, developed by Panattoni. Other notable projects include the Log Plaza in Frankfurt Oder, a speculative build by Alcaro comprising a 90,000-square-metre section, and The Space in Halle an der Saale, another speculative centre of nearly 90,000 square metres, developed by BentallGreenOak.

Positive Market Trends and Optimism
“The logistics real estate market has demonstrated remarkable resilience and optimism, reflected in the rise of speculative new construction projects,” said Kuno Neumeier, CEO of Logivest. He emphasized that the slight decline in prime rents—such as Munich’s drop from €16 per square metre in 2023 to €14 in 2024—indicates a healthy market correction. Despite this adjustment, rents remain high, reflecting continued demand and investor confidence in logistics assets.

Top Logistics Regions of 2024
The Leipzig/Halle region maintained its position as the leading logistics hub, with 465,000 square metres of new construction. The Cologne Lowland followed with 335,000 square metres, reclaiming its spot in the top tier, while the Duisburg/Lower Rhine region ranked third with 290,000 square metres.

Unexpectedly, the Upper Rhine region achieved its best result in five years, largely thanks to the Mercedes-Benz logistics centre, with 200,000 square metres of new developments. Meanwhile, Berlin saw a decline, slipping from the top three to 16th place with just 105,000 square metres, while the Munich region re-entered the top 10 with 135,000 square metres.

Looking Ahead to 2025/26
With stability regained in 2024, the logistics real estate market shows no signs of slowing down. Logivest projects approximately 13 million square metres of planned new construction for 2025/26, with 2.6 million square metres already in user-specific negotiations.

Neumeier remains optimistic about the sector’s potential, citing logistics real estate as an attractive investment despite looming uncertainties such as the February 2025 elections and economic fluctuations. He highlighted potential challenges, including market adjustments due to insolvencies and consolidations, but pointed to opportunities in reducing bureaucracy and advancing sustainability initiatives.

As the logistics real estate market continues to adapt and expand, it remains a key player in Germany’s economic framework, balancing growth with innovation and resilience.

Source: Logivest GmbH