Europe’s manufacturing sector is entering a new phase of high-tech expansion, according to Knight Frank’s European Manufacturing Report. The report states predicted growth of 14.7 percent over the next 10 years is forecast to contribute an additional €318 billion ($368 billion) to the euro zone economy by 2035, bringing the total value of the sector to €2.84 trillion ($3.3 trillion).
This growth trajectory is remodeling the real estate requirements of modern manufacturers and investors alike. Demand is increasingly driven by advanced industries such as battery and electric-vehicle supply chains, life sciences, semiconductors, clean-energy equipment, and precision engineering. These sectors are reshoring production and investing in state-of-the-art facilities that integrate manufacturing with research and development, distribution, and office space.
Average rental growth for European manufacturing and production assets has outpaced most other sectors, w
