A record year for logistics space take-up in the UK has helped to drive a notable lift in the European market, according to research from Savills.

The agency said take-up in the UK over the first three quarters of the year stood at 37m sq ft, a rise of 46% year-on-year. Also helping to drive a 10% uptick across Europe were the Netherlands (up 56%) and Poland (up 33%).

Savills said 2020 already marks a record for take-up in the UK, surpassing the 2016 total.

Mike Barnes, an associate in Savills’ European research division, said: “As a result of an uptick in e-commerce, we have seen take-up levels for logistics space increase dramatically over the last three quarters of the year… With supply currently looking limited, we anticipate rental growth to resume across the core mainland European markets from 2021, particularly given the structural undersupply of prime last-mile facilities.”

European investment transactions reached €22bn (£20bn) during the first nine months of the year, down slightly on a year ago.

Marcus de Minckwitz, director for regional investment advisory in EMEA, said: “2020 has been a remarkable year for the logistics market… All the lead indicators point to increased demand for warehouse space going forward, particularly in urban locations, which has led to record levels of competition, be it between developers, occupiers or investors.”

He added: “As more capital has flooded into the sector, prices have risen and we expect this to continue through the course of the next two to three quarters. When you consider some of the lowest cost of capital currently active in the sector then there is a case to be made that prime yields could move below 3% for the very best assets in the core markets.”