The European defence sector is undergoing a significant transformation, becoming increasingly diversified, innovation-oriented, and technologically advanced. Supported by defence investments totalling up to €800 billion, this development is directly influencing the geographic distribution of industrial activities and altering the structure of real estate demand across the region, finds a Colliers study.
The agency identified 38 key centers in Europe where the defense industry is concentrated. Each is characterized by a specific focus and competencies that influence the selection of locations and tenants' requirements regarding building types and parameters.
"There is a shift from single-purpose industrial facilities to secure hybrid buildings that integrate spaces for research and development, offices and light manufacturing. Tenants increasingly prefer flexible buildings with specialized infrastructure and high security standards, particularly within established innovation hubs," explains Josef Stanko, Director of Market Research at Colliers.
The study highlights differing requirements between traditional defense industry and companies focused on defense technologies. "The traditional defense industry continues to require heavy manufacturing plants, large logistics warehouses and outdoor storage areas. In contrast, companies engaged in defense technologies demand flexible spaces for research and development and light manufacturing, testing environments, secure offices and hybrid office-laboratory spaces," notes Stanko.
The defense sector's transformation is also impacting the Czech Republic. The Czech defense industry's center of gravity lies primarily in Eastern Bohemia, Moravia and Silesia, where key manufacturers operate. The most investment in the unmanned technology segment is the new Primoco UAV plant in Písek, costing €30 million, with capacity for building 300 aircraft per year. "Real estate is becoming an integral part of defense transformation and the ability to offer the right type of space will be a key factor for further growth in many locations," concludes Stanko.
