Around 2.3 million square metres of new build space in the first two quarters of 2024 / Leipzig/Halle again at the top of the top logistics regions / speculative new builds gain slightly in relevance.
The German logistics property market closes the first half of 2024 with a positive signal. After evaluating its own research data, the holistic logistics property consultant Logivest reports the start of construction on a total of around 2.3 million square metres of new logistics space. The data is always based on the time of the ground-breaking ceremony.
Following the slump in the fourth quarter of 2023 to a historic low of less than 500,000 square metres, the market has become much more agile again in the first two quarters of 2024, averaging over one million square metres.
‘Last year was very challenging for the German logistics property market. Cost increases and economic uncertainties have led to a strong reluctance to develop new properties. But the worst seems to be over. In the first half of the year, some regions have already recorded more new construction activity than in the whole of last year,’ says Kuno Neumeier, CEO of the Logivest Group.
Leipzig/Halle again at the top - Upper Rhine surprisingly in the top 5
For the second time in a row, Leipzig/Halle has positioned itself at the top of Germany's top logistics regions. With around 270,000 square metres, the region has already almost reached last year's total of around 275,000 square metres in the first half of the year. The main reasons for this are a new building of around 90,000 square metres by BentalGreenOak in Halle an der Salle and Panattoni's logistics park in Könnern. Both projects are being developed on a speculative basis - a positive signal that points to a stabilisation of the market, according to Neumeier.
The established regions of Cologne Bay and Duisburg/Lower Rhine also regained strength in the first half of 2024 and, as expected, returned to the top 3 logistics regions with a new build volume of around 225,000 square metres each. Both Duisburg/Lower Rhine and Leipzig/Halle were already identified as the regions with the greatest potential in Logivest's Logistics Property Seismograph 2023/2024. By contrast, the Eastern Ruhr region has developed less positively, lagging far behind the level of recent years.
The Upper Rhine region may surprise you with its best result by far in the last five years with around 135,000 square metres of new developments. The basis for this is the new Mercedes-Benz logistics centre in Bischweier in the district of Rastatt. At around 130,000 square metres, the new building realised by Panattoni is the largest project of the first half of the year and catapults the Upper Rhine region into the top 5 logistics regions for the first time. However, the outlook for the coming quarters is also very positive. More than 100,000 square metres are still planned with specific projects in the region and could be developed this year.
‘At the beginning of the year, we spoke of a market recovery from the second half of the year. In view of the planned space and the slight increase in speculative buildings, I am cautiously optimistic that the market will stabilise further in the second half of 2024,’ says Neumeier.
