Logistics market record figures and take-up levels FY2021
This year points to be the best year in history in the logistics sector, both in terms of take-up and direct investment volume. At CG Capital Europe, we are currently looking at new logistics’ deal opportunities for the beginning of the coming year, which make us to expect this growing trend will continue getting attention along 2022 from both, national and international investors.
Direct investment closed in Q3 2021 with a cumulative investment of c.€1.7 billion, an increase of 157% compared to the same period in 2020. In addition, take-up reached 1,885,000 sq.m, representing up to a 58% year-on-year increase. It is expected by FY 2021 for the logistic market in Spain to reach up to c.€2 billion
This trend is fundamentally due to the attraction and good moment that logistics’ assets are going through, derived, on the rental side, from the e-commerce phenomenon, which has been further boosted, increasing by almost 40% compared to 2020, making it the third fastest growing market worldwide this year.
These record figures during Q3 2021, mainly comes from the lack of availability in key regions as Catalonia, in addition to the fact that land prices for logistic use are rising across Spain due to high interest in both development and purchase (even with construction costs increasing between 10% and 20% at FY2021 due to the current situation).
Finally, rents are sustained but rising across Spain due to shortage of supply. Compression of yields with a forecast of 4% in the Central Zone in proximity with Madrid and Catalonia, due to the high demand and the appreciation of this investment as a very safe Asset class.