European warehouses transaction volume reaches €15.8b in H1 2017

Approximately €15.8 billion ($18.66 billion) was invested in warehouses during the first half of 2017, 22 percent above the historical volume recorded during the first half of 2016, according to BNP Paribas Real Estate. Retail and e-commerce contributed to the market growth in most countries.

“For the first time ever, the German industrial and logistics investment market recorded higher volumes than in the United Kingdom,” said Logan Smith, head of logistics investment for Europe at BNP Paribas Real Estate.

Spain and the South Netherlands recorded the highest growth in Europe this semester. The market for warehouses was more than 53,000 square feet in Madrid and in South Netherlands. Spain as whole rose more than 84 percent, or more than 7.1 million square feet, during the first half of 2017. And in the Netherlands, the volume of take-up exceeded in six months the annual volume reached in 2016. The market was boosted by strong economic indicators and significant growth in exports.

Germany is the largest occupier market in Europe boosted by the strong activity in its manufacturing industry and demand from logistics providers. For the third year in a row, the German market reached 26.9 million square feet.

In France, demand for logistics reached 16.79 million square feet during the first half of 2017. And in the United Kingdom, the market slowed, down 14 percent, totaling 151 million square meters during the first half of 2017.