The German logistics real estate market has rebounded strongly in the first half of 2024. According to a report from holistic logistics property consultant Logivest, construction began on approximately 2.3 million square metres of new logistics space during the first two quarters. This marks a significant recovery from the historic low of less than 500,000 square metres in the fourth quarter of 2023, with the market averaging over one million square metres per quarter in 2024.
“Last year presented significant challenges for the German logistics property market, with rising costs and economic uncertainties causing a notable slowdown in development. However, the market has shown signs of recovery, with several regions experiencing more new construction activity in the first half of this year than in the entirety of 2023,” said Kuno Neumeier, CEO of the Logivest Group.
Leipzig/Halle Leads the Pack
For the second consecutive time, Leipzig/Halle has emerged as the top logistics region in Germany. With around 270,000 square metres of new space, it has nearly matched its total from the previous year within just six months. Key projects contributing to this surge include a 90,000-square-metre facility by BentalGreenOak in Halle an der Saale and Panattoni’s logistics park in Könnern, both developed on a speculative basis—a positive sign of market stabilisation, according to Neumeier.
Cologne Bay and Duisburg/Lower Rhine Return Strong
The regions of Cologne Bay and Duisburg/Lower Rhine also showed robust performance in the first half of 2024, each recording approximately 225,000 square metres of new build space. These regions, previously identified as having significant potential in Logivest’s Logistics Property Seismograph 2023/2024, have reclaimed their positions among the top three logistics regions.
Surprising Growth in the Upper Rhine
A notable surprise came from the Upper Rhine region, which recorded around 135,000 square metres of new developments—the best result in the past five years. This growth was driven by the new Mercedes-Benz logistics centre in Bischweier, developed by Panattoni, which at 130,000 square metres, stands as the largest project of the first half of the year. This milestone has propelled the Upper Rhine into the top five logistics regions for the first time. With over 100,000 square metres of additional projects planned, the outlook for the region remains positive.
Market Outlook
“At the beginning of the year, we anticipated a market recovery in the second half. Given the current pace of new builds and the slight uptick in speculative developments, I am cautiously optimistic that the market will continue to stabilise through the rest of 2024,” Neumeier concluded.
This resurgence in new-build developments signals a potentially strong year ahead for the German logistics real estate market, with promising indicators of continued growth and stability.
