Aberdeen Investments indicated that Europe is undergoing a profound industrial transformation, shifting away from decades of hyper-globalised supply chains toward greater self-reliance and resilience. As geopolitical tensions, supply disruptions, and security concerns mount, policymakers are prioritising domestic and regional production capabilities.
A study by Aberdeen Investments pinpoints which real estate markets across the continent are best equipped to capitalise on this “reindustrialisation wave,” with industrial and logistics sectors emerging as prime beneficiaries.
The analysis valuates ten critical factors influencing a country’s ability to absorb new demand from reshoring and nearshoring trends.
These include economic growth forecasts, macroeconomic resilience, risk profiles, market liquidity, industrial development maturity, logistics efficiency, nearshoring attractiveness, defense spending, e-commerce penetration, and five-year total return projections for industrial and logistics assets.
Scores range from 5 (strongest) to 1 (weakest), drawn from reputable sources such as Oxford Economics, the World Bank, UNIDO, and MSCI Real Capital Analytics.
Germany dominates the ranking with an average score of 4.7, earning the maximum 5 in eight of the ten categories.
It is followed by the Netherlands at 4.1, excelling particularly in industrial depth, logistics performance, and online retail adoption.
The United Kingdom secures third place with 3.9, posting top marks in risk navigation, liquidity, defense commitment, and e-commerce.
France and Spain round out the leading group, offering established infrastructure and strategic advantages.
In contrast, Italy, Belgium, Austria, Portugal, and Finland trail behind, facing steeper challenges in scaling up industrial capacity amid the shift.
Established hubs in Germany, France, the Netherlands, Spain, and the UK are highlighted as the most attractive for investors seeking exposure to this reset.
Craig Wright, Head of European Real Estate Research at Aberdeen Investments, emphasised the urgency of the moment: in a fragmenting global landscape, nations must rebuild fractured value chains in critical areas such as defence, energy, chemicals, and technology.
“The challenge creates opportunities,” Wright noted, forecasting robust cash flows, rental growth outpacing inflation, and rising demand for secure, urban-adjacent facilities near skilled labour pools.
The reindustrialisation push spans six major themes: bolstering defence and advanced technology production; enhancing food security through precision agriculture and cold-chain logistics; reshoring textiles via automation and sustainable practices; accelerating renewable energy and grid infrastructure; localising automotive and machinery supply chains for electric vehicles and circular manufacturing; and strengthening pharmaceutical resilience to avoid future shortages.
While new greenfield development faces constraints due to housing pressures, the focus will increasingly turn to upgrading brownfield sites into modern, decarbonised facilities.
Wright added that opportunities will be balanced against the imperative to cut emissions, with limited scope for expanding industrial zoning in major cities.
As the European Union prepares to potentially unveil an Industrial Acceleration Act, increased defence and infrastructure spending is expected to underpin long-term growth.
For real estate investors, the narrative is quite evident now: positioning in the continent’s strongest industrial and logistics markets—particularly in the leading five nations—offers prospects in an era of strategic autonomy.
