Developers and investors are accelerating economic activity, anticipating a recovery in the European logistics market, while occupiers maintain a more strategic and cautious approach to growth decisions.

This is one of the key findings of the 5th Annual European Real Estate Logistics Census, published by Brookfield Properties, Savills and Analytiqa. The study, which collected 715 responses from investors, developers and occupiers across Europe, reveals the structural trends shaping the future of the sector.

Nearshoring and supply shortages drive demand for industrial space in Portugal
After a period of strong activity, 2025 is expected to record a more moderate pace in the market. The industrial sector consolidates its momentum with nearshoring and reshoring strategies. Portugal’s strategic location, combined with lower energy costs in the Iberian Peninsula, has been attracting new companies seeking space to serve multiple markets.

Meanwhile, the availability rate in Portugal stands at 3.5%, reflecting the scarcity of project development in the country over the past 15 years.

According to Pedro Figueiras, Head of Transactions at Savills Portugal, “this limitation in supply has created growing pressure on rents, especially for quality assets. The market has been constrained by low quality and obsolete stock; however, the speculative development pipeline currently underway will contribute to its growth, unlocking both occupational and investment activity in the segment.”

Confidence grows with occupier recovery
Investor confidence continues to rise, with 46% considering market conditions more favourable than a year ago and 56% expecting increased investment over the next 12 months. Developers follow this trend, with 36% planning to build more space – a 12% increase compared to the previous year.
This scenario reflects cautious optimism among occupiers: 41% project an increase in their logistics space needs over the next year, although 57% have chosen to delay or scale back their expansion plans.

Developers seek opportunities in Western Europe
Western Europe remains the main driver of economic growth, with occupiers pointing to Germany and France as priority destinations for expansion. Around two-thirds are focused on medium-sized units, between 5,000 and 9,999 sqm. Developers, however, continue to invest in large-scale units, highlighting a mismatch between current occupier needs and the space formats gaining relevance in the market.

ESG and AI redefine strategies
ESG regulation plays an increasingly strategic role in transforming the sector, with 88% of occupiers recognising it as a driver of structural change.

At the same time, artificial intelligence is accelerating innovation: 82% consider it a transformative technology – a 25% increase compared to the previous year.
Artificial intelligence and data analysis optimisation top the list of occupier investment priorities.

Ben Segelman, European Head of Logistics and Data Centre Real Estate, Brookfield, states: “The logistics market is at a strategic inflection point. Investors are anticipating trends and proactively developing spaces they believe will meet future occupier needs. Occupiers, meanwhile, remain cautious, adjusting to macroeconomic pressures while shaping their strategies with a focus on ESG and artificial intelligence. The next 12 to 18 months will be decisive in aligning demand with the most suitable and competitive space formats.”

George Coleman, UK & EMEA Logistics, Savills, adds: “This year’s Census, which achieved record participation levels, underlines how structural changes are shaping the next chapter of the industrial and logistics sector. ESG and AI are central to occupier strategies, while investors and developers are delivering the spaces that will support this transformation. The sector continues to adapt with resilience and is building a solid foundation for long-term sustainable growth.”

Read the full European Real Estate Logistics Census here: https://www.brookfieldproperties.com/en/our-businesses/logistics/europe/