The European logistics real estate market is set to maintain its strong momentum as we move towards 2025. Driven by e-commerce growth, supply chain reconfigurations, and the increasing importance of last-mile delivery, logistics assets have become a top priority for investors. In 2024 alone, the logistics sector saw a 7% year-on-year increase in demand for warehouse space across key European hubs such as Germany, France, and the Netherlands. This surge in demand is expected to continue, supported by favorable macroeconomic conditions and the persistent need for more efficient distribution networks.

One of the key drivers of the positive outlook for 2025 is the resilience demonstrated by logistics assets in times of market uncertainty. While other real estate sectors such as office and retail have faced challenges, logistics has proven to be a safe haven for capital. In 2024, the sector experienced a record-high investment volume of €45 billion, up 10% from the previous year. With vacancy rates at historic lows, particularly in prime locations, and rents continuing to rise, logistics properties are providing investors with both stable income and long-term capital appreciation.

Looking ahead, logistics real estate will benefit from the sustained transformation of global supply chains. The reshoring of manufacturing activities to Europe, accelerated by geopolitical factors and the desire for more resilient supply chains, is expected to further boost demand for warehouse and industrial spaces. Additionally, the rapid adoption of automation and smart technologies in logistics operations is enhancing the attractiveness of logistics assets, with projections indicating an increase in demand of 15% for smart warehouses by 2025. These trends are not only creating new opportunities for developers and investors but are also reshaping the landscape of the industrial real estate market.

In conclusion, the European logistics real estate sector is poised for continued growth as we approach 2025. The sector’s performance in 2024, with robust investment activity and rising demand, sets the stage for further expansion. As supply chains evolve and technology continues to play a larger role, logistics assets will remain a key focus for real estate investors seeking resilience, income stability, and growth in the years ahead.