Savills has examined the development of the European office market in a recent Spotlight publication and came to the following conclusion:
According to Savills' latest research, European office take-up in Q1-Q3 2025 increased by 3% year-on-year, while prime rents increased by an average of 4.9% year-on-year. Take-up in the office markets in Frankfurt (+76%), Dublin (+46%), Barcelona (+41%), Prague (+36%) and London (+18%) recorded the strongest growth compared to the respective five-year averages for Q1–Q3. This reflects a gradual recovery in demand from the technology sector, as well as continued strong demand from the professional services and financial sectors.
The average vacancy rate for office space in the European cities considered remained at 9.3% in Q3 2025, while the vacancy rate for prime space was below the 3% mark in many markets, further increasing the pressure on rents. The highest increases in prime rents were recorded in London West End (+17% year-on-year), Paris (+13% year-on-year) and Frankfurt (+13% year-on-year).
"We expect a gradual increase in take-up in 2026 as many users become more active again despite geopolitical uncertainties. A shortage of high-quality space in the central locations of many markets is likely to support rental growth and also rekindle the interest of project developers from 2026 onwards," comments Christina Sigliano, EMEA Head of Global Occupier Services at Savills.
According to Savills, average office occupancy* in the European cities surveyed rose from 60% to 61% last year. Before the pandemic, the reference value was still 70%. This moderate increase is accompanied by a growing number of companies tightening their in-office attendance policies, according to the international real estate consultant.
"Madrid continues to lead the European office markets with an occupancy rate of 68%. This is due to a high density of inner-city living, shorter commutes and a strong office presence culture on peak days," says Mike Barnes, Director of European Commercial Research Team at Savills.
