The office availability rate continues its downward trend in the main European markets. According to the Savills study, this is most noticeable in areas such as the Central Business District (CBD) of Paris, with an availability rate of just 1.9%, followed by Cologne (3.3%) and Hamburg (3.8%). This shortage of available office space is leading to a marked increase in rents, especially in central and accessible locations.
During the third quarter of 2023, office take-up in Europe reached approximately 1.9 million square metres. This represents a decrease of 11% compared to the five-year average, but an increase of 8% compared to the previous quarter. This change is attributed to a revival in business decision making, despite rising operating costs.
Madrid has led the increase in office absorption in 2023, outperforming the five-year average by 5%. Cities such as Bucharest and Munich have also experienced above-average growth, with increases of 3% and 1%, respectively.
The consultancy's study also highlights the current challenges in the construction sector and the financing of new real estate projects. These factors are contributing to the shortage of high-quality office space in the European market. As a result, competition for prime workspace in central locations has intensified, further driving up rents in the CBD areas of major European cities.
