A new report by Catella, looking at the logistics markets in Germany and Austria, has concluded that the two countries require an additional 4m square metres of logistics space over the next five years, which is attributed to the booming e-commerce sector.

Catella stated: ‘Logistics properties once more experienced an enormous increase in demand, which is accompanied by a corresponding price rally and a sustained yield compression. The development of rents has been less dynamic due to the pandemic and depends strongly on the respective use class of warehouse, logistics or production.

‘We analysed 25 logistics regions in Germany and 5 regions in Austria, which offer above-average opportunities for investors. The average prime yield for logistics properties in Germany is currently 4.1%, down 80 basis points since 2019. In Austria, the yield has also fallen significantly to an average of 5.0%.

‘The most expensive location continues to be Berlin with a yield of 3.3%, followed by Munich at 3.5%. In comparison, the yield in the Vienna region stands higher, currently at 4.2%. Nevertheless, it has also fallen in the last two years, down from 5.2%.’