European offices see continued growth in take-up and prime rents

European office markets are demonstrating continued resilience, with both take-up and prime rents experiencing increases, according to the latest research from Savills. 

Offices - Savills

For the first three quarters of 2025 (Q1-Q3), European office take-up rose by 3% year-on-year (YoY), while prime rents saw an average increase of 4.9% YoY.
Key markets driving this recovery include Frankfurt (+76%), Dublin (+46%), Barcelona (+41%), Prague (+36%), and London City (+18%). These figures represent strong performance against their respective five-year Q1-Q3 take-up averages, largely fueled by a gradual resurgence in demand from the tech sector, alongside sustained interest from professional and financial services.
The average European office vacancy rate held steady at 9.3% in Q3 2025, while prime vacancy rates in numerous markets remained below 3%, exerting upward pressure on rental values. This push was most evident in core markets, with London West End leading with a 17% YoY increase in prime rents, followed by Paris CBD (+13% YoY) and Frankfurt (+13% YoY).
Savills also noted a slight uptick in average European office occupancy, which nudged from 60% to 61% over the past year. While still below the pre-pandemic benchmark of 70%, this modest rise aligns with a growing number of corporations implementing stricter office attendance policies.
Christina Sigliano, EMEA head of Global Occupier Services at Savills, commented: “We anticipate an incremental increase in take-up in 2026, as occupiers resume activity despite geopolitical uncertainty. A shortage of prime CBD stock across the majority of markets will support rental growth and begin to pique developer interest during 2026.”
Mike Barnes, director in Savills' European commercial research team, added: “Madrid continues to lead European office markets with an occupancy rate of 68%, driven by a high concentration of city-centre living, shorter commutes, and a strong in-office culture on peak days.”