European logistics investment activity grew 3% to €43.2bn last year, according to Savills’ latest European Logistics Spotlight.
Activity in the final quarter totalled €13.6bn, an increase of 40% compared with the previous quarter.
Smaller markets like the Czech Republic (+213%), Portugal (+114%) and Austria (+99%) saw the strongest growth. Of the larger core markets, Poland (+25%), Italy (+24%) and the UK (+13%) outperformed and drove investment volume growth in 2025.
Savills also saw prime yields edge up by 2bps in Q4 2025, ending the year at an average of 5.25% across Europe.
From an occupational perspective, total take-up in 2025 hit 28.1m sq m, 7% lower than 2024, but 8% higher than the pre-pandemic (2015-2019) average.
In H1 2025, take-up was at the lowest level since 2015. The second half of the year, however, was markedly better, with take-up rising by 26% compared with H1 and was 10% higher than the H2 2024 total. In terms of the larger European markets, the UK (+15%), Germany (+13%) and Italy (+8%) performed the best.
Andrew Blennerhassett, associate director in Savills’ industrial and logistics research team, said: “While industrial and logistics assets performed well over the course of the year, the sector’s share of overall investment volumes has normalised since investors began reallocating to the sector in 2021. In fact, industrial and logistics accounted for 22% of total investment into European real estate in 2025, down 1% from a year earlier and 2% from the series peak in 2022 and 2023, respectively. Driving this shift has been a recovery in demand for offices and above average investment into purpose-built student accommodation assets.”
George Coleman, UK and EMEA logistics at Savills, added: “There is a renewed confidence in the market and a notable increase in transactions closing in Q1 across Europe. Investors are focussed on income, over any significant yield compression play, with multi-let assets benefitting from increased liquidity given diversified income streams and long income net lease assets also in focus.”
