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MOSCOW, May 13. /ITAR-TASS/. Russia topped the ranking of European countries with the best potential in logistics, concluded the consulting company Jones Lang La Salle (JLL) and the international CoreNet Global association.
Turkey and Poland follow Russia on the potential rating. Russian and Turkish markets have a potential for long-term growth but real estate companies can face the risk of high prices for land and red tape there, said head of JLL Department for the warehouse and industrial property market research in Europe, Africa and the Middle East by Alexandra Tornou.
Even so, almost two thirds of respondents in Europe are planning to increase warehouse facilities over the following three years. The need for warehouses is due to expanding new trade formats, including integration of traditional and online trade, which forces retailers to find ways to accelerate delivery.
According to JLL’s estimates, large facilities of 30-50,000 square meters will be in demand as almost 40% pollsters demonstrated interest. Smaller warehouses of less than 10,000 square meters will be popular with about 30%, whereas extra-large complexes will be necessary for 25%
High demand for warehouses in Europe will persist over the next three years, the experts believe, with cost reduction being the key priority. Online and multichannel trade will be the main driver of the logistics market growth (63%). The respondents believe the development of warehouse property in Europe will be influenced by the emerging markets (40%) and the use of innovation (28%).