• Industrial & Logistics Land

    May, 2024

The logistics market in Spain, both at stock and contract level, has grown in recent years thanks to the modernisation and restructuring of supply chains by local and international retailers and the growth of e-commerce operators. The main areas in Spain where logistic clusters have been developed are Madrid and Catalonia but also other important cities such as Valencia, Seville or Zaragoza.

In Spain, the estimated consolidated urban land is c. 49.9 million sq.m. of which c. 14.2 million sq.m. belongs to Madrid and another c. 11.6 million sq.m. to Barcelona. The estimated sectorised land for development amounts to c. 124.4 million sq.m. (c. 50 million sqm in Madrid; c. 25 million sq.m. in Barcelona). Another outstanding community is Aragón, with c. 9 million sq.m. of consolidated urban land and 7.5 million sq.m. of sectorized land for development.

In recent years, in terms of demand and development of logistics land, international investors have stood out, acquiring a large part of land. With the e-commerce boom, between 2017-2021, the demand for warehouses and last mile plots has increased. Joint ventures between national and international developers also stood out. Additionally, with the growth of technology, the demand for data storage has increased, giving rise to a new concept such as Data Centres.

Logistic supply is limited throughout Spain, with the Central Area (Madrid and Castilla la Mancha) accounting for 70% of total land sales in FY23. In Catalonia, only 5.2% of the total area has been transacted. Finalist land is currently the most demanded, although in certain areas, where management times are more agile, there has been an increase in developable land operations, with regions such as Castilla la Mancha standing out.