Spotlight on Defence: Arming for growth (parts one - four)
This four-part Spotlight series explores how Europe’s rearmament and rising defence expenditure are emerging as significant drivers of future real estate performance. The series begins by examining the macroeconomic and policy backdrop, highlighting how shifting geopolitical priorities are leading to sustained increases in defence spending across Europe and creating a long-term economic tailwind for real estate markets.
Building on this foundation, the series analyses the sector-specific implications of defence investment. Increased defence production and supply chain activity are expected to boost demand for industrial and logistics space, particularly within established defence clusters in France, Germany and the UK, creating opportunities through both asset acquisition and new development. At the same time, growing government funding, expanding private investment and a rapidly evolving defence technology ecosystem are expected to support demand for laboratories, R&D facilities, innovation campuses, business parks and high-quality office space across Europe's leading research and technology hubs.
The final paper considers the implications for residential real estate, identifying both employment-led and place-based sources of housing demand. Growth in defence manufacturing, advanced technologies and R&D activity is expected to strengthen housing needs within key innovation and defence clusters, while military expansion and investment in defence infrastructure may drive demand for accommodation linked to bases and military communities.
Overall, the series highlights how defence spending is reshaping occupier demand across multiple real estate sectors and identifies a range of potential investment opportunities in logistics, research and innovation facilities, and residential assets across Europe.
Disclaimer
This document is for informational purposes only and does not constitute, on BNPP AM Alts’ part, an offer to buy or sell, solicitation or investment advice. It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date. Past performance does not predict future returns.
All information in this document is established on data made public by official providers of economic and market statistics. BNPP AM Alts disclaims any and all liability relating to a decision based on or for reliance on this document. All exhibits included in this document, unless stated otherwise, are as of the publication date of this document.
Furthermore, due to the subjective nature of these analysis and opinions, these data, projections, forecasts, anticipations, hypothesis and/or opinions are not necessary used or followed by BNPP AM Alts’ management teams or its affiliates, who may act based on their own opinions and as independent departments within the Company.
By accepting this information, the recipient of this document agrees that it will use the information only to evaluate its potential interest in the strategies described herein and for no other purpose and will not divulge any such information to any other party.
Any reproduction of this information, in whole or in part is, unless otherwise authorised by BNPP AM Alts, prohibited.
© 2026 BNPP AM Alts All rights reserved
AXA IM and BNPP AM are progressively merging
AXA IM and BNPP AM are progressively merging and streamlining our legal entities to create a unified structure
AXA Investment Managers joined BNP Paribas Group in July 2025. Following the merger of AXA Investment Managers Paris and BNP PARIBAS ASSET MANAGEMENT Europe and their respective holding companies on December 31, 2025, the combined company now operates under the BNP PARIBAS ASSET MANAGEMENT Europe name.