Rising defence spending across Europe is expected to affect real estate demand, most notably in major cities in Bavaria and western Germany, southern France, and the west of England, according to LaSalle Investment Management.
The manager’s European Cities Growth Index (ECGI) annual report says European states’ planned defence budget increases from 2025 to 2030 is expected to shift spending and growth to new locations across Europe.
In the manager’s 2025 ranking of European city regions with the strongest real estate demand outlook, Munich and Nuremberg — with their concentration of arms manufacturers and major defence companies — have jumped from seventh to fourth place, and 43rd to 28th place, respectively. Other city regions across Europe poised to benefit include the regions surrounding Oslo (in seventh place, up two places) and Bordeaux (in 36th, place up 11 places).
In the United Kingdom, Bristol and the Manchester-Liverpool conurbation
