MIPIM News

European economy to grow as markets ‘remain solid’

11 March 2025

Economic growth will continue in Europe at a modest pace as interest rates “slowly drift” throughout 2025, according to the head of a pan-European industrial and logistics investment firm.

Valor Real Estate Partners managing partner and chief executive Christian Jamison, told the MIPIM News, that 2025 will he a “year of increasing economic growth, albeit from a low base”, leading to gains, fur the European real estate markets.

Jamison said: “Investor interest and occupational demand for real estate will pick up off the back of the improving economic environment.

“Performance will vary across sectors, but the outlook for logistics, and specifically urban, infill logistics, looks highly attractive on a relative basis as the structural tailwinds of e-commerce, urbanisation and nearshoring continue to buoy the sector.”

He added that a demand imbalance in the last-mile stage of logistics assets will boost a continued growth and rising rents in the sub-sector, which he predicts will “outperform” this year.

He said: “Consumer demand for defined-time-slot delivery on either same-day or next-day will underpin tenant demand for urban warehouses.

“Best-in-class urban assets, located close to major populations, can deliver substantial operational savings as the reduced drive times and the increased volume of parcels delivered per hour more than offsets the higher rent.”

Jamison stressed the value of understanding the diversity of European markets, within the EU and the UK, as a key to understanding future investment trends and opportunities.

“Europe is not one homogenous market,” he said. “Understanding the country-specific and even city-specific variances is important. I will be particularly interested to compare and contrast the views of market participants, from different European countries, to understand what they are seeing on the ground in terms of occupational demand as well as capital markets.”