Savills – European Office Development, May 2025

The main topic of the report is the development of office spaces in Europe.

In Q1 2025, office space absorption volumes in Europe increased by 4% year-on-year. The average office vacancy rate in Europe rose by 10 basis points to 8.4%, while average prime office rents grew by 4.5% year-on-year. Economic growth in the eurozone accelerated to 0.4% quarter-on-quarter in Q1, supported by improvements in Germany, France, and Italy. Central and Eastern Europe, as well as Southern Europe, are forecasted to perform best among major European economies in 2025-2026. The impact of tariffs on office rental demand will be limited, but there are risks associated with weaker global demand and increased trade tensions.