European office take-up expected to rise 3% in 2026 - Savills

Savills predicts a 3% year-on-year increase in European office take-up for 2026, potentially making it the strongest market since 2022. 

Christina Sigliano

Despite a 10% fall in the last quarter of 2025 due to occupier caution and geopolitical factors, Savills notes a strong volume of ongoing requirements.
In Q4 2025, Frankfurt (+45%) and Dublin (+40%) showed the strongest performance against their five-year averages, boosted by significant deals signed by Commerzbank and Workday. Southern European and CEE markets also contributed significantly to leasing figures, driven by robust domestic economies and increased activity in the banking and technology sectors.
By the end of 2025, European prime office rents grew by an average of 3.4%, with London City (+18%), Frankfurt (+13%), and Munich (+7%)leading the way. Warsaw (+6%) and Budapest (+7%) also saw strong growth after a period of stagnation due to a shortage of prime properties. 
Savills expects an average 3.7% prime rental growth in 2026, accompanied by a slight decrease in lease incentives, which fell from 13% to 12% of lease value in 2025, though they remain historically generous. Lease incentives also dropped in Oslo, Munich, Madrid, and Dublin due to limited new developments.
Mike Barnes, director in Savills European Commercial Research team, said: “Overall, the picture for the European office market is one of stability erring towards positivity: Eurozone services PMI reached 51.9 during January 2026, indicating a modest level of economic expansion as hiring sentiment reached its highest level for 12 months, whilst the Eurozone unemployment rate is at a record low. These indicators, plus a dearth of development activity, look set to support further occupier activity and maintain rents in the coming months.”
Christina Sigliano, EMEA head of Global Occupier Services at Savills, added: “While the last couple of months of 2025 saw occupier activity slow, we are tracking a substantial number of requirements across Europe which should transact this year and therefore will continue to support ongoing office rental growth.”