Average cost per square meter of warehouse construction in European cities 2018

Zurich in Switzerland is the most expensive European city to build a warehouse in. This is true for both basic factory units and large distribution centers. The average cost per square meter of internal area oscillated between 1,452 and 1,657 U.S. dollars in 2018, depending on the size.
Unsurprisingly, the most valuable cities for commercial real estate in Europe – be that office space, logistic or shopping centers – tend to be financial hubs.

Warehouse take-up in Europe

Likely due to these high construction costs, Zurich is not listed in a ranking of European cities by take-up of large warehouses. Instead, Birmingham in the United Kingdom (UK) comes in first, with 1.33 million square meters of warehouse space spread throughout the municipality. Of the first ten entries, three are located in the UK, which ties it with France for the most popular warehouse locations.

Retail warehouse rental prices

Edinburgh has the highest " target="_blank" rel="noopener">prime rents for retail warehousing properties in Europe. As of the third quarter of 2018, roughly 364 euros are paid per square meter per year. This is more than twice the amount paid for the same building type in Zurich, which ranks seventh. However, rental prices for not retail specific warehouses are far less expensive.

Average cost per square meter of internal area for constructing a warehouse in selected European cities in 2018

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Release date

April 2018


United Kingdom

Survey time period


Supplementary notes

Further details about which regions make up the figures for UK South, UK Central and UK North are unavailable.

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Statistics on "Construction cost of U.S. commercial buildings"

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