A 'price discovery' period begins in the logistics market

According to Savills, investment into industrial assets in Europe has continued to reflect the strong performance of the sector’s occupational market.  In the first three quarters of 2022, European investments in industrial real estate assets totaled €42 billion, an increase of 2 percent y/y and 50 percent above the five-year average. Investment volumes in Portugal (595 percent), Belgium (124 percent), and Italy (93 percent) outperformed their five-year averages by the widest margins.

Portugal (+1,513 percent), France (+117 percent), and Spain (+76 percent) experienced strong annual growth in the third quarter, while momentum slowed in the Czech Republic and Hungary with no transactions in the quarter, while declines were recorded in Romania (-69 percent), the Netherlands (-66 percent), and the UK (-46 percent).

“Despite the current global economic uncertainty, the attractive feature of the Polish market for investors is the extremely low vacancy of ca. 4 percent across Poland and even 1 percent or below in some regions coupled with slowing supply of future space and rental rates set to grow substantially over the coming year,” John Palmer, Head of Industrial Investments Savills Poland, said.