News / From the associates

Prologis’ 2024 report on the global logistics real estate market highlights a 5% decline in rents worldwide, with market conditions returning to normal following the peak reached during the pandemic.

In Europe, net rental rates fell by 1% compared to the previous year, marking the first decline since 2010. Compared to the United States, where rents rose significantly during the pandemic, Europe saw less pronounced growth, with an overall increase of 33% compared to 2019 (versus 59% in the U.S.).

The United States also saw a slowdown in rents for the first time, with a 5% contraction, similar to that recorded in Europe. Despite this, areas such as Southern California continued to show signs of growth thanks to sustained demand and a recovery in leasing activity.

In Europe, however, markets such as Poland and Hungary saw rising vacancy rates and the introduction of tenant incentives, resulting in reductions in effective rents. Conversely, in more mature European markets characterized by high demand and low supply, such as France and Germany, vacancy rates remained relatively low, helping to maintain rent stability.

Overall, the European vacancy rate rose to 4.8% at the end of 2024, an increase of 100 basis points compared to the previous year.

As for Italy, Rome ranked fourth among European cities with the highest rent growth, followed by Milan in fifth place. This trend reflects the continued demand for high-quality properties, with a growing preference for Class A properties, which have seen an increase in demand.

Despite economic and geopolitical challenges, the sector’s outlook for 2025 forecasts a moderate recovery in rents across Europe, driven by limited new supply and high replacement costs, which will help support rent increases in certain core markets.