According to Savills’ latest report on Defence Logistics, geopolitical tensions have triggered a renewed focus on defence, with spending levels not seen since the Cold War. This surge in investment, driven by the UK Strategic Defence Review (SDR) and new NATO commitments, is expected to generate up to 37 million square metres of additional demand for industrial and logistics space across Europe and the UK. The Netherlands alone is projected to require approximately 600,000 square metres, placing it among the top three countries outside the ‘Big Five’ (Germany, France, Italy, Spain and the UK) investing most heavily in defence infrastructure, alongside Sweden and Poland.
At the NATO summit in June 2025, member states committed to invest 3.5 per cent of GDP in core military capabilities. If the Netherlands moves towards this target, it will result in significant growth in defence-related employment and real estate demand. Savills anticipates that the Dutch market will require up to 600,000 square metres of additional space, primarily for logistics support to NATO operations and storage of defence equipment. Across Europe, this could result in a 16% increase in industrial and logistics take-up compared to the 30 million square metres recorded in 2024.
With its strategic location and advanced infrastructure, including the Port of Rotterdam and several military hubs, the Netherlands is well positioned to play a central role in European defence logistics. The expected rise in defence spending is likely to drive demand for specialised real estate, including storage facilities for munitions, electronic components and spare parts, distribution centres supporting NATO operations and supporting infrastructure such as testing sites, data centres and cyber-secure communications hubs.
The defence sector has unique real estate requirements, including secure storage, specialised production halls and advanced IT infrastructure. This presents opportunities for developers and investors focused on defence-related projects.
“With the Dutch government announcing a €3.4 billion increase in defence spending for 2026, of which approximately a quarter is allocated to infrastructure, real estate and digitalisation,” says Niek Poppelaars, Head of Logistics and Industrial at Savills Netherlands. “The defence sector is set to become a key driver of industrial and logistics real estate in the Netherlands over the coming years. By anticipating this trend, implementing proactive policy, collaborating with government and industry, and repurposing existing sites such as former military bases, the Netherlands can play a pivotal role in shaping Europe’s defence infrastructure.”
As in other European countries, clustering of defence firms and suppliers in the Netherlands will generate agglomeration benefits. Regions with existing defence or high-tech clusters are expected to benefit most from this development.