Construction costs of industrial buildings in selected European cities 2024, by type

London and Munich were among the most expensive cities in Europe for the construction of warehouses in 2024, while advanced manufacturing facilities were the most expensive in Amsterdam. Meanwhile, among the selected cities, Paris had the lowest construction costs for warehouses. However, construction costs do not always follow the same trends as commercial real estate in Europe, with sale prices differing significantly in some cases.

Warehouse take-up in Europe

These high construction costs in the largest cities probably affect the take-up of large warehouses European cities. Instead, Birmingham in the United Kingdom (UK) came in first in 2023, with roughly 913,000 square meters of warehouse space spread throughout the municipality. Of the first ten entries, two werelocated in the UK, which makes it one of the most popular warehouse locations. 

Retail warehouse rental prices

London was the UK region with the highest bix-box warehouse rent prices. As of the last quarter of 2023, roughly 28.5 British pounds were paid per square foot. This was more than twice the amount paid for the same type of buildings in the West Midlands. London was also the European city with the highest rent for warehouses, with Oslo and Helsinki following far behind.