Offices in Europe: Consolidation of occupier and investment markets

“Office markets continued to suffer from the uncertain political and economic environment in some European countries, and investors remained cautious on the asset category, which has been affected by structural changes in the way people work over the last five years. Overall, 2024 ended with a stabilisation in take-up and a slight increase in the volumes invested in offices. There could be a more pronounced recovery in 2025 if the economic and financial situation lastingly improves.” says Argie Taylor, Head of BNP Paribas Real Estate’s International Investment Group.

After an encouraging recovery in the second and third quarters of 2024, the rental market in Europe slowed in Q4, falling by -8%, with some major markets such as Paris and the German cities still hampered by political and economic uncertainty.

All told, take-up in 2024 was almost unchanged compared with the previous year, at 7.96 million sqm in the 18 leading European markets*.

Some markets rallied strongly, such as Dublin (+58% after a gloomy 2023), Amsterdam (+17%), Berlin (+7%) and Brussels (+6%).  Lyon (+2%), Cologne (+1%) and Barcelona (+1%) managed to hold their own, while Paris and its Inner Rim together with London saw respective declines of -7% and -6%.

If you wish to read more about the growing supply, the vacancy rate or prime rents; download the press release below.