Prime rents for logistics buildings 33 top and regional locations in Germany have increased by an average of 6.8% in the past twelve months, according to data from Realogis.
The German consultancy for industrial, logistics, and commercial real estate analyzed actual asking rents from property owners for its rental map. The analysis included the top 8 German logistics markets: Berlin, Hamburg, Düsseldorf, the Ruhr region, Cologne, Frankfurt, Stuttgart, and Munich. Additionally, 25 regional markets were also considered.
The top 8 markets saw an average increase of 9.0% for new-build properties, with the Ruhr region, in particular, experiencing a substantial 19.2% rise.
However, the rental growth for high-end properties has slowed considerably. In the last six months, the average increase across all 33 markets was only 0.9%. The top 8 markets, excluding the Ruhr region (+6.9%), have seen stagnant rental growth in the first half of 2024.
Of the five most expensive new-build logistics locations, three are located in Bavaria. Munich leads with €12.00/m2 (+14.3% year-on-year), followed by Nuremberg with €8.90/m2, Berlin with €8.60/m2 (+10.3%), Augsburg with €8.50/m2 (+13.3%), while Hamburg and Düsseldorf share fifth place with €8.25/m2, up 3.1% and 10.0%, respectively.
Outside the top locations, Wolfsburg in the North saw an 18.2% price increase; Leipzig and Magdeburg experienced double-digit rental growth in the East; Augsburg recorded a 13.3% price increase in the South; while Mainz/Wiesbaden is the most expensive market in the West outside the top 8.
The Ruhr region remains the top market with the highest prime rental rates for new logistics properties. Despite ranking 15th at €7.75/m2 (from 18th in H1 2023), it saw a substantial 19.2% increase in rents (from €6.50/m2 in H1 2023). This is the highest rental growth among all top markets.
Zwickau at €5.80/m2 (+3.4%), Halle at €5.50/m2 (+9.1%), Erfurt with €5.60/m2 (price stagnation), and Hof at €5.50/m2 (-5.2%) are considered the most favourable markets based on prime rental rates for new construction.
