The Madrid region is consolidating its position as one of the most dynamic logistics hubs in Southern Europe. A combination of strategic location, strong market growth, and new institutional support measures are creating an environment that is increasingly attractive to international operators — particularly those from Germany, a country with global leaders in logistics, transport, and supply chain solutions.
A central gateway to the Iberian Peninsula
Few European capitals can match Madrid’s geographical advantage. From the city, both Spain and Portugal can be reached in less than 24 hours, making it the natural distribution center of the Iberian Peninsula. The capital concentrates the country’s main highway and railway networks, allowing efficient flows of goods across the peninsula and beyond.
This connectivity is reinforced by Adolfo Suárez Madrid-Barajas Airport, one of Europe’s busiest airports, which serves as a key platform for both passenger and cargo traffic. For logistics operators, the airport represents a vital link to international markets. DHL Express, for example, already operates a major hub in Madrid-Barajas, using the site as a backbone for its operations in Spain.
Market dynamics: demand outpacing supply
The logistics market in Madrid has entered a phase of robust expansion. In 2024, more than 1 million m² of logistics space was leased across the region, according to Colliers, while nearly 820,000 m² is currently under construction for delivery in 2025–2026. This pipeline underlines the scale of investor and developer confidence in the region.
At the same time, rental growth is accelerating: prime rents increased by approximately 10% year-on-year, evidence of a tightening supply-demand balance. The combination of limited available stock and sustained demand from e-commerce, retail, and manufacturing sectors is pushing the market upward. For investors and operators, this environment translates into both opportunity and healthy returns.
Public policy: Madrid backs its logistics hub
In February 2025, the Madrid Regional Government launched the Regional Logistics Agency, headquartered in Coslada, one of the most established logistics nodes in Spain. Coslada is home to a dry port with customs services and direct rail connections, linking Madrid to the country’s seaports and enhancing its intermodal capabilities.
The agency’s mission is twofold: to reinforce Madrid’s positioning as a European logistics hub and to facilitate the entry of foreign operators. For German investors and logistics groups, this initiative signals a clear political commitment to strengthening the sector and reducing administrative barriers to investment.
Concrete signals from international players
The attractiveness of Madrid is not theoretical — it is already visible on the ground. DHL, the German logistics giant, has expanded strongly in the region. The company has invested more than €100 million in its Barajas hub, operates 180 service points in the region, and has been awarded the “Madrid Excelente” quality label for its commitment to innovation, customer service, and sustainability through its GoGreen Plus program.
Although just one example, DHL illustrates how international operators can leverage Madrid’s infrastructure, institutional support, and demand dynamics to expand their footprint in Southern Europe.