The Netherlands is one of the most attractive logistics real estate markets in Europe. Our country offers a lot of potential because the relationship between retail and the logistics sector is not yet fully developed.
This is according to the Logistics Market Attractiveness (LMA) index by real estate service provider Savills. The ranking assesses all logistics markets in Europe. Only Germany, France and the UK score higher than the Netherlands.
The Netherlands is thus an attractive country for investors in logistics real estate, but there is room for improvement. The relationship between retail and the logistics sector can be strengthened further. "The Dutch know how to find their way to online shops better than other European consumers, but they are (still) spending significantly less money," adds Douglas van Oers, Co-Head Logistics & Industrial at Savills. "This offers room for substantial further growth of e-commerce in the Netherlands, which I believe is going to create increasing demand for logistics real estate in the coming years."
Read also: 'Direction lacking in construction of distribution centres'
Top 3
Germany tops the ranking with 70.2 points. The country offers strategic opportunities for investors looking to benefit from growing and cross-border e-commerce, according to the international real estate consultant.
France and the UK ranked second and third with 68.3 and 68.1 points respectively. The UK has the most mature e-commerce market in Europe and shows the lowest spread between internet usage and online purchases, meaning Britons are used to online shopping. The upward trend is expected to continue, with e-commerce growing by 6.7 per cent over the next five years. This translates into growing investor demand for logistics property.
'Western Europe leads the way'
"Although the effects are felt across Europe, the Savills LMA Index shows that Western Europe is leading the way when it comes to e-commerce penetration and subsequent investment in the logistics real estate market," states Marcus de Minckwitz Director Regional Investment Advisory EMEA at Savills. "Despite the challenging socio-economic outlook, retail sales in Europe are expected to grow by an average of 2.1 per cent per year. As more purchases will take place online, we expect demand from both investors and users for logistics real estate to increase further."
