Europe is undergoing one of the most profound fiscal and industrial transformations in its modern history. After decades of underinvestment in defence following the Cold War, the region is entering a sustained period of rearmament, driven by increased geopolitical tension, security concerns and a renewed emphasis on strategic autonomy.
For real estate investors, the implications will be real but nuanced: While this structural shift opens the door to long-term opportunities, only those with the right strategies, stock and geographical exposure will be able to capitalise on it.
At the core of this transformation is a sharp increase in defence spending. NATO’s European members have already raised expenditure from around 1.4 percent of GDP in 2022 to slightly more than 2 percent in 2024, with a new target of 3.5 percent by 2035.
National targets must always be taken with a pinch of salt, subject as they are to fiscal constraints and political feasibility. However,
