Real estate logistics sector keeps on trucking

Between June 2022 and March 2023, European logistics real estate values fell by around 20%, depending on location and quality. The decline was more pronounced in the UK, where values fell by as much as 30% in some areas. Despite the selloff, the sector is seeing strong demand and clear evidence of income growth. Although the sector won’t be immune to a recession, the occupational market and long-term opportunities remain strong. That said, it will be critical to focus on asset quality and the fundamentals that are driving performance, says abrdn.