Professional services and tech driving European office demand

Professional and business services and the tech sector were the main drivers of European office demand in H1 2026, according to Savills’ latest research. 

Professional and business services accounted for 24% of take‑up, slightly down from 26% in 2025, while the tech sector rose sharply from 14% to 22% as both expanding AI firms and traditional tech occupiers resumed activity.

Banking, insurance and finance fell from 21% to 16%, returning closer to long‑term averages. Flex office providers maintained a 3% share of demand, with companies seeking interim space amid shortages of prime vacancy and favouring plug‑and‑play solutions.

Average European office vacancy remained stable at 9.4% in Q2 2026. Savills reports that CBD vacancy rates average 4.9%, with prime CBD vacancy estimated at around 2%, placing upward pressure on prime rents. Compared with previous cycles, CBD vacancy is notably lower, reflecting occupiers’ heightened preference for centrally located, high‑quality stock.

Mike Barnes, European office research director at Savills, said Dublin, London West End, Berlin and Munich recorded the strongest leasing activity relative to their five‑year H1 averages. London West End benefited from robust AI sector demand, while Berlin and Munich saw major deals from Commerzbank and JetBrains. Strong owner‑occupier activity from Dublin City Council in Q1 lifted Dublin above historic levels.

Prime rents rose by an average of 3.7% in the 12 months to Q2 2026. Munich (+11%), Frankfurt (+10%) and Warsaw (+10%) led rental growth, driven by shortages of prime stock across major cities. Savills notes that the weakest new‑build pipeline in over a decade is sustaining rental pressure.

Christina Sigliano, EMEA Head of global occupier services at Savills, said average prime office rents in Europe have risen 27% since the end of 2019, three times the increase in secondary CBD rents. She attributed the trend to occupiers seeking better quality space in central locations to attract and retain staff, while modernising premises to reduce Scope 3 emissions.