EMEA's 2020 Industrial & Logistics take-up was up +22.6% y/y, fuelled by increasing logistics demand from servicing online retail growth. Despite some localised record volumes, supply-demand imbalances continue to hinder take-up. Latent demand will continue to drive take-up until significant supply filters through.

Demand fell considerably in 2020, with take-up volumes down -38% y/y, but some significant transactions completed towards the end of 2020 driving a 16% growth in Q4 take-up (q/q). With cooling demand and the completion of several new schemes across markets, EMEA’s average (weighted) vacancy rose to 6.8% by year-end, from 5.5% a year earlier.

European investment volumes witnessed a strong bounce back in Q4 2020, with key markets witnessing improving liquidity and the return of global capital sources. Investment into Direct European real estate reached €252 billion for the full year, a 25% fall on 2019, but the figure masks a range of different performances across countries.

2020 could potentially be the catalyst for a structural change in real estate. Over 2021 we will begin to see the true impact of the pandemic and start to make sense of what it’s long lasting impact will be.