Saturday, 15 March 2025
The German logistics real estate market saw significant shifts in 2024, with logistics and courier, express, and parcel (CEP) service providers maintaining their dominance despite a notable decline in new construction activity. According to data analyzed by Logivest, a leading logistics real estate consultancy, new construction volumes reached approximately 4.4 million square meters in 2024. Logistics service providers led the way with 770,000 square meters, though their activity dropped by 20% compared to 2023 and over 50% from 2022.
Retail Sector Takes Second Place
The retail sector emerged as a strong contender, significantly increasing its demand for logistics space. With nearly 700,000 square meters of new construction, the sector ranked second, marking a 20% year-on-year growth. The non-food retail segment was a standout performer, registering an impressive 180% increase. Among the largest projects was Fressnapf’s new 72,000-square-meter e-commerce logistics center in Nörvenich, North Rhine-Westphalia, which broke ground in March 2024. This facility, catering to the pet supplies retailer’s growing e-commerce needs, highlights the sector’s expanding role in driving logistics development.
Automotive Sector Sees Decline
The automotive industry, traditionally a key driver of logistics construction, experienced a sharp 40% decline in 2024, contributing just under 340,000 square meters of new space. Mercedes-Benz’s 130,000-square-meter logistics center in Bischweier represented more than a third of the sector’s total activity and was the largest logistics project of the year. Despite the slowdown, the automotive sector remains a significant force in the market, with approximately 350,000 square meters already planned for 2025 and 2026. The sector’s evolving focus on e-mobility is evident in projects such as CATL’s logistics facility in Nohra, reflecting the growing demand for battery and electronics logistics.
Defence Sector Gains Traction
One of the most notable developments in 2024 was the emergence of the aerospace and defense sector as a new driver in the logistics real estate market. Previously a minor player, the sector accounted for over 100,000 square meters of new construction last year. This surge is attributed to the global political landscape, which has spurred demand for logistics infrastructure in defense. With an additional 77,000 square meters already in the pipeline for future projects, the sector is poised for sustained growth in the coming years.
Looking Ahead: Retail Leads the Way
The retail sector is projected to be the dominant driver of logistics real estate development in the near future. Logivest anticipates that retail-related new construction will exceed 1.2 million square meters in 2025 and 2026, underscoring its growing importance. As e-commerce continues to expand and consumer behavior evolves, the sector’s demand for state-of-the-art logistics facilities is expected to remain robust.
While the logistics market in 2024 experienced mixed performance across industries, the diversification of demand drivers signals a dynamic future for the sector. Retail’s ascendance, the resilience of logistics providers, and the emergence of new players such as the defense sector collectively shape a promising outlook for the logistics real estate market in Germany.
Source: Logivest GmbH
