Savills

Publication

Industrial & Logistics Report 2024

In recent years, Portugal's logistics market has experienced an unprecedented and significant transformation. The growth of e-commerce and the need for more efficient supply chains have driven an increasing demand for modern and well-located logistics spaces.

The current pipeline is the largest in the past 15 years and already has an occupancy rate of approximately 60%. Considering that only 1/5 of logistics assets in Portugal are efficient from an occupancy perspective, it is vital that quality offerings enter the market.

The new study, "Portugal Logistics Market," highlights the importance of quality infrastructure that meets sustainability demands and strict ESG metrics. It also outlines the factors that make Portugal a unique destination for investment in this real estate segment and notes the evolution of the national market's occupational and investment performance in recent years.

Key Drivers for Logistics Investment in Portugal:

Strategic Location: Portugal offers a geographic position that facilitates global logistics operations;

Infrastructure: Substantial investments in ports, railways, and highways have improved the country's connectivity and logistics efficiency;

Quality Workforce and Highly Competitive Labor Costs;

Energy Availability and Costs: The country ranks among the top 10 in the European Union for the most competitive electricity tariffs per kWh;

Commitment to Sustainability: The growing adoption of sustainable practices and compliance with ESG standards make the Portuguese logistics market particularly attractive to investors concerned with environmental impact.