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European property demand to reach record highs

European property demand to reach record highs

2016 will be a monster year for European mega-sheds, analysts predict. Thanks to rising consumer demand, commodity price movements and economic growth, they say demand for warehouse floorspace has never been stronger.

Data-crunchers at surveyor JLL say the European warehouse property market is on course for total take-up of 18.2million sq m (196 million sq ft), up from 17.1 million sq ft (184 million sq ft).

Take-up is therefore projected to be 6.7% higher than posted in 2015 - a very respectable rate of increase given that last year was itself a record high. Even so, the growth rate represents a deceleration from the 11.4% uplift recorded in 2015, suggesting to some observers that growth in European economies is beginning to slow.

JLL’s Supply Chain Activity Index reflects further expansion in EU trade volumes, positive GDP growth, and economic sentiment which is stronger than the historical average.

JLL researchers conclude that there will be “continuing vigorous demand for logistics space across Europe for the remainder of the year”.

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