E-shops will be the main driver of logistic development in the near future, with Europe in need of 8.7 million sqm of new logistic space over the next five years, according to a report published by Savills. The company foresees an increase in online sales from €112bn to 234bn. Having predicted the trend, investors have poured €30bn into the segment, up by 29 percent y-o-y. For now, many investors are targeting the UK and Germany, but Savills warns, that this might change in favor of CEE markets.
Logistics space has quadrupled over the decade in Central Europe to 18 million sqm, increasing demand and bringing occupancy up to 92 percent from 85 percent five years ago. In Slovakia, a mere 4 percent of the logistics space is vacant, leading Cushman & Wakefield to predict a return to speculative development, as €1.77bn were invested into logistics properties in the region last year, representing 25 percent of the total real estate investment activity in the CEE.
