Chinese businesses have committed to more than 2.5 million sqm of industrial and logistics space across Europe since the start of 2024, reshaping demand across the region’s logistics and manufacturing hubs, according to new research from Cushman & Wakefield.
Analysis in Cushman & Wakefield’s Future Flows: Global Dynamics & European Industrial Real Estate report, shows Chinese occupier demand has been led by manufacturers in the electric vehicle, battery and renewable energy technology sectors and ecommerce distribution.
For the period 2024-H1 2026, the UK (757,000 sqm), Poland (695,000 sqm) and Hungary (180,000 sqm) have attracted the highest levels of leasing activity, alongside strong demand in Germany (163,000 sqm), France (153,000 sqm) and the Netherlands (157,000 sqm) and growing volumes in Spain (127,000 sqm) and Italy (131,000 sqm).
Battery manufacturer CATL alone has committed more than €11 billion across investments in Debrecen, Hungary (€7.34bn) and Valencia, Spain (€4.1bn). Battery manufacturing operations developed by Envision AESC in Northern France, North East England and Western Spain, alongside investments from Sunwoda, Gotion, EVE Energy and CALB, have further strengthened manufacturing activity across Hungary, Slovakia and Portugal.
Alongside production investment, rapid expansion by ecommerce businesses such as Shein, Temu and JD.com is generating growing demand for warehouse and fulfilment space: in the first half of 2026 alone, Chinese ecommerce operators directly leased over 350,000 sqm of space across Europe. In addition, Chinese logistics providers – including Cainiao, Cirro and JD Logistics – have also expanded their European networks as more retailers establish in-market fulfilment operations, adding further demand for modern distribution facilities in the region’s major consumer and gateway markets.
Sally Bruer, Head of EMEA Logistics & Industrial Research at Cushman & Wakefield, said:
“Chinese businesses are growing as a significant source of demand across Europe’s industrial and logistics markets, but their location choices are particularly revealing. Ecommerce operators and their logistics partners are concentrating on locations that enable fulfilment to Europe’s largest consumer markets, while manufacturing investment is increasingly targeting locations such as Hungary, Poland, Czech Republic and Slovakia that offer access to skilled labour, established supply chains and competitive operating costs. This reflects a long-term commitment to building operational platforms within Europe rather than simply serving the market through exports.”
The findings reflect a broader shift in how Chinese manufacturers, retailers and logistics providers are approaching Europe. Faced with slowing domestic demand and intense competition on the Chinese mainland, businesses are increasingly investing directly in European production, fulfilment and distribution operations to support future growth. Regulatory and legislative measures including the removal of low-value import duty exemptions, tighter scrutiny of strategic supply chains and regulations covering batteries and clean technologies also encourage businesses to establish a stronger operational presence within Europe.
The majority of take-up is concentrated in modern, high-quality facilities that support operational efficiency, supply chain resilience and sustainability objectives. The most sought-after facilities are units between 10,000 and 25,000 sqm, accounting for 821,000 sqm or 32% of all space leased by Chinese businesses since 2024. Demand for larger facilities has also been significant, with occupiers taking over 743,000 sqm (29%) as units of 25,000-40,000 sqm and 766,000 sqm (30%) in units exceeding 40,000 sqm since 2024.
The pace of expansion is equally notable. A survey conducted by Cushman & Wakefield Research in Greater China found 78% of business cited access to new customers and markets as the primary motivation for expansion and almost half (48%) of businesses expect to be operational within a year of deciding to invest in Europe.
Tim Crighton, Head of Logistics & Industrial EMEA at Cushman & Wakefield, said:
“Many Chinese companies are looking to move from investment decision to operation in a matter of months rather than years. Those requirements favour modern buildings that can be occupied quickly, creating additional pressure on supply in a number of Europe’s established industrial and logistics markets. For landlords, developers and investors, understanding these occupiers’ timelines and operational requirements will be critical to capturing future demand.”
Looking ahead, Cushman & Wakefield expects Chinese occupier demand to remain focused on Germany, the UK, France, Spain and Italy, while manufacturing investment continues to support industrial growth in lower-cost markets including Hungary and Poland. The firm’s research indicates that demand is likely to remain concentrated in modern, high-quality space, particularly facilities capable of supporting advanced manufacturing, ecommerce fulfilment and pan-European distribution operations.
