After years of either fully remote or hybrid working, evidence is mounting that European workers are returning to their offices
This article was published in our October 2025 magazine
Will workers return to the office? After the global experiment in remote working that was the Covid-19 pandemic, it was the question on every developer’s and office agent’s lips.
For a long period over the last five years, the answer appeared to be ‘sort of’. A few blue chip companies felt able to mandate a full return to five days a week in the office. Employees of Goldman Sachs, for instance, couldn’t just walk into another job and expect the same renumeration.
But most white collar workers seemed to settle into hybrid working, spending two or three days in the office and the rest of the week working from home. Now, however, the situation appears to be in flux once again, with various studies suggesting that people are spending more time with their colleagues. So what does the evidence tell us?
Last month, JLL published a global study on working patterns. While it stopped short of predicting a full return to the office, it did find that 72% of the global workforce now view return to office policies positively, albeit with growing expectations when it comes to workplace experience, flexibility and employee wellbeing.
The 2025 Workforce Preference Barometer gathered insights from 8,700 office workers across 31 countries, employed at organisations with more than 1,000 staff members and representing sectors from finance to technology, manufacturing and public services. The research outlined the workforce’s biggest challenges and priorities and how corporate real estate and business leaders can work together to design and curate office spaces that meet employee needs well into the future.
“Three years into the hybrid work era, there is an opportunity for business leaders to rethink the role of the office and how it fits into employees’ lives,” says Dr. Paul Morgan, global COO, Work Dynamics, at JLL. “The answer lies in creating adaptive workplaces that support diverse needs—from flexible arrangements for caregivers to connection-rich environments where emerging talent can build relationships and accelerate their growth.”
Nearly two-thirds (66%) of office workers reported that their company has clear expectations for the number of days required to work in the office and acceptance of these policies correlates directly to the quality of the experience. In fact, 84% of respondents who are happy about their workplace also feel positive about office attendance policies, while 48% of those who are not happy with their workplace also feel negatively toward these mandates.
Employees who see office requirements in a positive light tend to work in environments where business needs and employee wellbeing are equally prioritised – they benefit from quality workplaces, empowering cultures and strong learning and development opportunities. They value clear expectations and shared routines – 50% of these individuals say office presence supports better teamwork and 43% prefer to work from the office. Overall, nearly three-quarters of employees who see office requirements positively say their company is a great place to work.
In contrast, negative perceptions of office requirements have less to do with the guidelines themselves and more with the lack of in-office support and amenities, “underscoring the need for quality office spaces and personalised approaches to hybrid work arrangements”, the report said. Negative perceptions of office requirements are largely driven by employees’ personal concerns such as quality of life (55%), feeling stuck (42%) or let down (41%).
Different regions and demographics also present various levels of attendance policy acceptance. Employees in the Middle East (87%), North America (74%), Latin America (72%) and APAC (71%) reported higher approval rates than their European counterparts (64%). However, viewing the policy positively does not always mean complying with it and North American employees, especially in the US, tend to comply less than their counterparts in the other regions.
The research highlights 78% compliance in North America and 74% in the US, while the global average is at 81% and Europe at 85%. Beyond the culture, individual profiles also play a role. Younger employees (81%), are more likely to respond positively to return to the office mandates as they benefit from increased visibility, support and professional development in the office space.
Despite the growing acceptance of office mandates, more than one-third of respondents (38%) still report that their office requires significant improvement. Regardless of the policy, JLL found that compliance to mandates sits at 82% for those with full-time return to the office mandates and 95% for employees required one to two days in the office.
More than half of respondents cite salary as a key driver in looking to change roles. However, work-life balance (65%) is now a leading priority across age groups for retention – an increase from 59% in 2022. “Younger workers are particularly looking beyond compensation for fulfilment through rewards, recognition, wellbeing and community,” the report said.
For example, over half of global workers (57%) report flexible working hours would improve their quality of life. However, only about half currently have access to this model. The gap also persists among men and women, with 52% of men reporting access to flexible hours versus 47% of women. Caregivers specifically seek additional support, including increased flexibility (43%), short notice paid time off (42%) and remote training options (33%).
“In a more complex and distributed talent market, the office remains a key tool to both engage and attract top talent, especially as it relates to employee expectations around how one’s work and life can best integrate together and complement one another,” said Peter Miscovich, executive managing director and global future of work leader at JLL.
“Employers that smartly invest in workplace design and fit outs that promote wellbeing can create high-performance work environments that will support the various life stages of employees – from new members of the workforce to more tenured employees, further promoting long-term talent attraction, retention and future business growth.”
Oliver Vogt, managing director of WÖHR + BAUER, agrees. “Today, office properties must offer much more than just workspaces,” he says. “They should inspire, create space for exchange and personal development – and at the same time offer amenities known from the hospitality sector. Whether concierge, food and beverage, sports facilities or cleaning services, the specific design depends on the location and the needs of the users.”
He adds: “Existing office properties also offer opportunities – provided that revitalisation achieves the same level of quality as new development and also meets growing sustainability requirements in terms of energy consumption. Today, this is a prerequisite for leasing or selling.”
The findings of the report also reveal an eight percentage point decrease among employees that feel overwhelmed or exhausted since 2022. The number spikes to 46%, however, among caregivers, a group that represents nearly half of the global workforce. “This makes it increasingly important to curate workspaces that foster wellbeing, growth and meet employee needs,” the report said.
This point is further underscored when considering retention – while salary (46%) and flexibility (37%) remain fundamental to retain employees seeking new roles, one third of employees report they would leave their current employer in search of better career development and re-skilling opportunities. The same proportion is re-evaluating the role work plays in their lives.
The JLL study isn’t the only game in town, however. Data from the Living and Working in the EU e-survey from Eurofound, the EU research body, published earlier this year, showed a decline in the number of respondents engaged in remote work, with the percentage of people working entirely from the workplace increasing from 36% in 2023, to 41% in 2024.
According to Eurofound, over 40 million people teleworked across the EU in 2021, double the number of 2019, as COVID-19 restrictions and changes in work culture significantly impacted working patterns. “For many workers, the transition to telework was an overnight change but – due to efficiency gains in many areas and the flexibility that telework provides – the return to the office, until recently, has been a slow one,” it said.
“However, new data indicates that, while the return to the workplace is gradual, it is gaining momentum. Large companies are demanding full scale return to the office for all workers and in many cases, it seems, this is against the wishes of workers. Companies cite the basis for the return as the need for greater cooperation, productivity and innovation, whereas workers claim greater autonomy and better work-life balance is to be found at home.”
Eurofound data also indicates that men now have slightly more access to remote work possibilities than women and, for the first time, the Living and Working in the EU e-survey recorded more women than men working entirely at the workplace. Across the EU, the survey also found significant national differences in remote working, with countries like Cyprus and Greece showing lower remote work rates, whereas remote work is most common in the Netherlands and Ireland.
So, the research shows that workers are getting back to the office. This is, however, a trudge rather than a dash. It is still far from certain that we will ever return to the typical working patterns seen before the Covid-19 pandemic raised its ugly head.
Germany’s office market may seem uncertain at first glance. Vacancy rates are rising, hybrid work is the norm, and new completions are swelling the supply pipeline. Yet beneath the surface, a strong countercurrent is building: tenants are willing to pay a premium for high-quality, ESG-compliant offices in core urban locations.
For strategic investors, this signals a timely opportunity – prime-location office redevelopments in major German cities offer the chance to capture strong returns while mitigating downside risk.
Office vacancy in Germany’s top five markets hit around 8.2% by end-2024, with further increases expected during 2025. Frankfurt now tops 10% vacancy – its highest in years. But headline rents tell a different story: across six of the top seven cities, prime rents rose considerably in 2024. Even in vacancy-heavy Frankfurt, rents reached an all-time high of €53/sqm in Q2 2025. Hamburg still shows the lowest vacancy (4%) and rising prime rents (+1.4% YoY), while Berlin’s premium office rents have edged up despite its highest vacancy rate since 2015.
This divergence reflects a strong flight to quality. Occupiers are increasingly rejecting low-spec, poorly located space and focusing on sustainable, central, well-connected offices. In Hamburg, demand remains focused on high-quality space, pushing average rents higher in Q2 2025. In Frankfurt, the flight to quality continues: despite rising vacancy, occupiers prefer new or fully refurbished CBD properties, driving prime rents to record levels.
This demand trend creates fertile ground for inner-city office redevelopments. The approach is straightforward: acquire outdated assets in prime locations, upgrade to modern standards and offer what the market is clearly craving. Yes, it’s a value-add strategy with development risk – but in the right locations, leasing risk is low. Tenants want premium space and they’re prepared to pre-lease it.
Importantly, pricing today supports such plays. After three years of market correction, office yields in Germany’s top cities are the highest in over a decade. Asset valuations are near cycle lows with 30-40% discount to peak prices, providing cost bases that can support robust returns once the market stabilises.
And signs of stabilisation are emerging: leasing activity is projected to rise in 2025, while new construction has begun to slow. Investors who act now can deliver new premium space just as the cycle swings upward – capturing rental growth and valuation uplift.
Not every old office block is a gem in the rough. The best candidates share two key traits: unbeatable location and top-tier ESG potential.
Location matters more than ever. Central connectivity, public transport access and walkable amenities are now non-negotiable. Assets near Frankfurt’s banking district, Berlin’s City-West or Hamburg’s City-Center benefit from urban vibrancy and infrastructure that employees value. Without these, even a refurbished building may struggle in a quality-driven market.
Sustainability is mission-critical. Occupiers and investors increasingly require green credentials. Platinum-level certifications (LEED, DGNB) are becoming the gold standard. These labels do more than signal compliance – they support value retention, attract tenants with ESG mandates and align with the eligibility criteria of top institutional buyers and lenders.
A JLL report from 2024 warned of a looming supply gap in low-carbon buildings – up to 70% of demand for green office space may go unmet by 2030. Those who deliver certified, energy-efficient buildings in the right locations will be best positioned to capture that surge.
Downturns are when smart capital lays the groundwork for future outperformance. The current market offers just that: discounted prime assets, growing tenant polarisation, and the clear need for ESG-driven redevelopment. With construction slowing and demand stabilising, those who move decisively now can deliver sought-after space at the right moment.
Germany’s office market isn’t in free fall – it’s evolving. Investors who understand the changing demand dynamics and act on them have the chance to redevelop value, literally. Central, sustainable office assets aren’t just a hedge against vacancy – they’re tomorrow’s trophy buildings. Now is the time to create them.
Dirk Ruppert is CIO at CELLS
From what we’re seeing, it’s all about bringing people together. Our research shows that employees highly value socialisation opportunities, alongside the office being essential for internal meetings and team brainstorming sessions. The office plays a central role in allowing employees to collaborate, socialise, communicate and learn.
It’s become an essential part of what companies offer their employees. Our research indicates that UK workers prioritise work-life balance above all else, with many actively seeking greater flexibility when choosing new roles. Companies understand that flexibility has become a key selling point in their employee value proposition.
Many clients report that they’ve embraced remote working arrangements because employees are increasingly making career decisions based on the flexibility offered by potential employers. The commute factor is also significant - employees are prioritising shorter travel times and more control over their working environment. Our clients view flexible working policies as essential for maintaining their competitive edge in recruitment and reducing staff turnover.
Work patterns vary widely across industries, company sizes and geographies. Financial services stand out most prominently - they’ve been far more office-centric and have taken a much stronger stance on return-to-office mandates since the pandemic. Healthcare, retail and manufacturing also tend to have higher proportions of full-time office workers, though this is often due to the nature of their operations not being compatible with remote work.
Tech, e-commerce and energy sectors tend to embrace more flexible working arrangements. These organisations typically have robust technology infrastructure that supports hybrid work effectively. However, they’re still working to strike the right balance between flexible policies, ensuring proper collaboration and maintaining an attractive employee proposition. Interestingly, some well-known tech firms have recently reversed course, mandating five days in the office, which has been met with employee pushback.
Culture and company engagement, collaboration and client interaction.
When the travel time to the office is quite long or when they are afraid of losing talent to one of their competitors.
When they trust their employees on completing their tasks and when collaboration with other employees is not part of their daily jobs.
Financial services has the lowest office occupancy rates in the Netherlands and most companies want their employees back in the office to improve company culture. Legal and professional services companies in particular encourage the younger generation to be in the office for mentoring and training.
The tech sector stands out as a sector where companies often allow their staff to work remotely as most of the work is being completed digitally. For consultancy firms, the data is slightly contradictory as they are not necessarily working remotely, however, they are often working at their clients’ offices.
More innovative work that requires collaboration and exchange among employees, as well as visibility, especially with regard to promotions.
The main advantages of remote work include: first, improved work-life balance through better integration of work and personal life, for instance through greater flexibility for managing personal affairs; second, the substantial reduction in commuting time.
The reduced space requirements and consequently lower rental cost, plus increased chances for talent retention and attraction .
Particularly striking is the IT sector, considering that many companies in this industry are dealing with extremely high remote working rates, since IT sector employees work outside the office significantly more than average, leading to management and cultural challenges for these companies.
Consulting and auditing firms, predominantly driven by massive pressure in the labor market and the requirements for flexibility in attracting and retaining talent.
Commuting times in Madrid are much shorter than other markets, such London or Paris. Plus, it leads to higher brand awareness, which is important for talent attraction and retention. Quality space and technical features also mean that the office has all the tools for better working ambience and efficiency.
For many companies it is a must. Others say it provides staff with more flexibility.
For most companies this is for certain business reasons, for example some back-office operations.
This is not related to a single sector - it’s an overall trend recently. Perhaps law firms and public administration bodies are more likely to encourage staff back to the office because of the nature of office based work they do.
Historically tech companies, due to the sector they are in.
Some companies are seeking greater oversight of staffing during a period of economic uncertainty, aiming to encourage employees to collaborate in person around shared goals. Others are focused on building a stronger sense of company identity and fostering team spirit.
It’s necessary to meet new expectations set following the pandemic. Some companies fear that without a working-from-home policy they will lose or fail to attract talent.
It’s a selling point for attracting talent and keeps costs down
In France, the finance and luxury sectors have both required staff to be back in five days a week, or have very limited working-from-home policies, since early on in the pandemic. Finance is typically linked to productivity and compliance issues, whereas the luxury sector is more about fostering a brand identity and company ethos.
The tech sector stands out, where increased flexibility has been sold as a benefit to attract staff.
Clients primarily want staff in the office to enhance collaboration and innovation through face-to-face interactions, spontaneous conversations and better cross-functional teamwork that’s difficult to replicate remotely. They also seek to preserve company culture and strengthen employee engagement by maintaining organisational identity, building stronger interpersonal relationships, and facilitating mentorship opportunities.
Clients accept hybrid working models primarily to attract and retain top talent in a competitive labour market, recognising that flexible work arrangements have become a key employee expectation and differentiator for recruitment. They acknowledge that many tasks can be performed effectively remotely, allowing for cost savings on office space while maintaining productivity through technology-enabled collaboration tools and digital workflows.
Clients accept largely remote working models primarily for significant cost savings, as they can dramatically reduce or eliminate expensive office real estate footprints while maintaining operational efficiency through digital infrastructure and cloud-based systems. They recognise that remote work enables access to global talent pools without geographical constraints, allowing them to hire the best candidates regardless of location while often reducing labor costs in expensive urban markets.
Real estate, construction and residential development show the highest return-to-office rates at 77%, with employees spending an average of three days per week in the office, attributed to the nature of their business being closely tied to physical building management, face-to-face meetings with clients and showcasing property listings. Retail, transport, logistics and tourism also demonstrate strong office presence with a 62% return-to-office rate, as these industries typically require coordination of physical operations, customer service and supply chain management that benefits from face-to-face collaboration.
Shared service centres/business process outsourcing show the most remote-friendly approach with only a 21% return-to-office rate and employees working just one day per week in the office, because the majority of Polish employees in this sector cooperate with globally dispersed teams and have limited direct contact with colleagues and clients, making remote work a natural fit. IT and telecommunications demonstrates high remote work acceptance with employees working only 1.5 days per week in the office, as their digital-first nature and technology-enabled workflows make physical presence less critical for productivity.
Collaboration and innovation. They believe in-person interaction fosters creativity, faster problem-solving and stronger teamwork. It’s also about culture and engagement Many emphasise the role of the office in embedding company culture, mentoring junior staff and building a sense of belonging. Then there is productivity and oversight. Some feel that physical presence enables better focus, accountability and ease of management. Plus, certain organisations value having employees on-site to meet with clients, vendors or partners.
Flexibility and retention. Hybrid working arrangements are seen by some as essential to attract and retain talent, particularly among younger employees. Then there is the work-life balance. Some believe that allowing remote days demonstrates support for employee wellbeing and reduces commuting stress. Certain clients recognise that some tasks are better suited to focused, remote work, while others benefit from in-person collaboration. Plus, sometimes hybrid models allow for more efficient use of office space, reducing occupancy costs.
The nature of the work. Roles that are highly individual or technology-driven can often be performed effectively without physical presence. Remote working also enables organisations to recruit from a broader geographic pool without relocation costs and reducing reliance on physical office space lowers real estate and operational expenses. Plus, in some cases, retaining staff requires accommodating their preference for remote work.
Yes, several sectors show this tendency. Financial services firms often emphasise the need for collaboration, confidentiality and fostering a strong client-facing culture. Legal and professional services rely heavily on mentoring, training and client interaction, which are perceived to work best in person. And creative industries, such as advertising, design and media companies often value the spontaneity and innovation that arise from face-to-face collaboration.
Yes, sectors more open to remote work include technology and IT, where the work is often highly digital, project-based and easily managed through online platforms. Consulting and knowledge services work on client sites or remotely, making office presence less critical. Back-office and support functions across industries involve tasks such as finance, HR and customer support, which can often be performed effectively from home. Finally, start-ups and digital-first businesses prioritise flexibility and reduced overheads.
With the Wissenscampus, WÖHR + BAUER is shaping a new business district in Stuttgart-Weilimdorf. The project combines new buildings such as W9 and W15 with the revitalisation of W11, creating more than 68,000 square metres of space for knowledge and innovation driven companies.
Compact multi-storey car parks free up land for office use, while sustainable design principles – from energy-efficient façades and hybrid timber construction to green outdoor spaces – set new standards for the district.
The W9 building has already been leased to the software company Vector and features renewable energy systems such as a heat pump with ice storage. W11 is being comprehensively revitalised to provide modern office environments and attractive amenities, while W15 complements the ensemble as a hybrid timber construction meeting KfW 40-EE standards.
Kajima’s partial refurbishment and extension of 16 Berners Street, formerly known as Orwell House, transformed three conjoined and out-dated office buildings into modern workspaces with long-term ‘lettability’, according to the company.
The initial design centred around a CLT extension to add much-needed extra floorspace and to meet the highest sustainability targets. “But the least carbon-intensive option turned out to be a concrete slab,” a spokesperson for Kajima said. “While this is not the trendy and marketable Scandinavian timber style they envisaged, it is the most sustainable solution for this particular building.”
Uniquely, the concrete slab will be supported by steel columns recycled from the oil and gas industry. “Circular tubes are generally less in demand but ideal for the columns we needed,” they added. “The approach here was looking outside the usual supply chains to find a material that would serve its purpose whilst minimising waste.”
This structural approach, alongside retaining 70 percent of the original bones of the building, is helping save up to 907 tCO2e of carbon compared to a new build of the same size.
Union Investment has commenced the extensive redevelopment of 4/5 Grand Canal Square, the former Dublin headquarters of Meta and one of the city’s most recognisable waterfront office buildings.
Construction works, led by Walls following a competitive tender process, began last month with the redevelopment being managed by Lafferty. The scheme is targeting completion for early 2027 with an estimated construction value of around €70 million.
The 18-month programme will transform the building into 250,000 sq ft of premium, sustainability-led workspace at the heart of Dublin’s South Docklands, where Savills and Cushman & Wakefield have been appointed as joint letting agents.
Key features of the redevelopment include two receptions located at Grand Canal Square and Cardiff Lane; a tenant amenity focus, with 12.5% of the building dedicated to services including a business lounge, ground floor café with external seating, flexible workspace, a private gym and wellness suite, and a communal roof terrace with panoramic waterfront views; and a seven-storey glazed atrium.
The investment comes at a pivotal moment for Dublin’s office market. Historically, the city has carried between 3–4.5 million sq ft of new office development at any one time. By mid-2026, this is forecast to fall below 500,000 sq ft. 4/5 Grand Canal Square is the only speculative new office scheme targeting delivery in 2027.
Seb Wilson, asset manager for Union Investment, said: “4/5 Grand Canal Square is one of Dublin’s most prominent office buildings and this refurbishment represents a significant investment in the future of the city’s business district.
“By retaining the existing structure and reimagining it to the very highest sustainability standards, we are setting a new benchmark for low-carbon development in Dublin. With its exceptional location, premium amenity offering, and best-in-class environmental credentials, we believe 4/5 Grand Canal Square will be one of the most attractive workplaces in Europe when it completes in 2027.”
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