The European logistics market is entering a phase of stabilisation following a period of adjustment driven by higher interest rates, tighter financing conditions, and increased supply. Market fundamentals are gradually improving across key locations, while demand remains supported by structural trends, including e-commerce growth, supply chain optimisation, and the ongoing need for modern logistics facilities.

E-commerce continues to drive demand for modern and increasingly automated warehouse space, supporting growth across the logistics real estate market. At the same time, development activity is becoming more selective, reflecting a stronger focus on location quality, occupier requirements, and market fundamentals.

Geopolitical uncertainty continues to influence global trade flows, reinforcing the importance of regional supply chains and inventory buffers. Easing tensions in the Middle East have supported market sentiment and occupier confidence.

Investment sentiment is improving as pricing stabilises and yield adjustments approach completion. Limited prime stock and constrained development activity continue to support asset values. Sector remains well positioned for a gradual recovery, despite a cautious start to 2026.

Going forward, markets supported by solid fundamentals, including balanced supply pipelines, resilient occupier demand, and strong transport connectivity, are expected to outperform during the recovery phase. Locations benefiting from limited new supply and sustained structural demand are likely to remain at the forefront of market growth.