On September 27, 2021, Savills reported a record year for the European logistics segment, as investment volumes and take-up activity are already in excess of five-year averages at the half-year point, reaching a total of EUR 22.5 billion.
The UK is the most popular investment destination, accounting for 37% of the overall H1 deal volumes. Ireland, Spain, and the Netherlands were other markets that performed above their five-year averages. Savills analysis of new capital raised by funds shows that 39% of the volume of new funds raised this year has been allocated to logistics – more than any other commercial sector.
According to the company, European logistics take-up reached 18.7 million square meters in H1 2021, also 63% above the half-year average. Take-up in Poland in H1 2021 exceeded 3,000,000 square meters for the first time in history and was higher than in France, the United Kingdom, and Spain.
“With the average European logistics yield now standing at 4.35% there is little reason to doubt, in markets where the occupational market conditions are right, that yields will not follow France, Germany and the UK to sit comfortably below 4% and potentially sub-3% for the most prime assets,” added Savills Head of European Logistics Research Kevin Mofid.