Europe Flexible Office Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 17.93 Billion |
| Market Size (2029) | USD 29.83 Billion |
| CAGR (2024 - 2029) | 10.72 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Flexible Office Market Analysis
The Europe Flexible Office Market size is estimated at USD 17.93 billion in 2024, and is expected to reach USD 29.83 billion by 2029, growing at a CAGR of 10.72% during the forecast period (2024-2029).
- The increase in small and medium-sized businesses is a trend observed across all major cities of Europe, while new working practices are neither location nor sector-specific. These trends have fueled the flexible office market in Europe. Additionally, the rise in the number of startups in the region is also expected to boost the market's growth.
- The growing significance of digital systems and the need for completing knowledge-intensive tasks has transformed into a surging desire among employees to work from the office or from any desired location in an independent way.
- This has offered firms in Europe a chance to utilize their office space more proficiently, reduce the traveling hours of employees, and increase employee satisfaction, thereby boosting their work efficiency and productivity. This will help the flexible office market grow during the forecasted period.
- The flexible office market is among the sectors that are mostly exposed to the negative impact of the COVID-19 pandemic. On the one hand, the lockdown measures have forced millions of people to work from home and, on the other hand, the short-term nature of contracts have left flexible offices with very low occupancy rates across Europe. In Dublin and Stockholm, long leases and expensive rents have shifted some occupiers towards more flexible property solutions, and these factors are drivng the dynamic flexspace markets.
- Although the demand for flexible office space continues to grow, there are some obstacles standing in the way of the further adoption of this model. Commonly raised concerns include the issues of information security, confidentiality, and privacy in a more open environment. This is leading to the companies being worried about the potential impact on their marketing, especially because it could weaken their brands. But such concerns seem outweighed by the risk that companies may not have enough flexible space in their portfolios. This is due to the developments in the labor market, with many employers worrying about either keeping or attracting the most highly skilled workers.
Europe Flexible Office Market Trends
This section covers the major market trends shaping the Europe Flexible Office Market according to our research experts:
Western Europe Leading the Market
With the rise in self-employment after the global financial crisis, cities such as London, Amsterdam, Dublin, Berlin, and Copenhagen have been the crucibles of the European flexible space boom.
They are not merely the cities where the market has grown the most rapidly, but they have also seen the greatest number of new providers and models. The value of office real estate investments in European cities was highest in the German cities incuding Berlin, Hamburg, Munich, and Frankfurt as of the second quarter of 2021. These four cities attracted a total investment value of about EUR 7.6 billion (USD 8.14 Billion).
The office property sector is one of Europe's biggest markets, Central Paris attracted EUR 4.3 billion (USD 4.61 Billion) in the second quarter of 2021. Central London was the third-ranking city and the only other that attracted investments of over EUR 1 billion (EUR 1.07 Billion). The other European cities had office real estate investments valued below EUR 1 billion (USD 1.07 Billion).
As of the first half of 2021, the West end area of London had the highest prime headline rents at EUR 125.5 (USD 134.56) per square meter per month. This was roughly EUR 50 (USD 53.61) per square meter more than Paris and London (City), which had the second- and third-highest rents, respectively, displayed.
Substantial Drop in Leasing Activity in Europe
The coronavirus (COVID-19) pandemic significantly reduced leasing activity in the European office market in 2020 and 2021. Although take-up in both years fell short of the five-year norm, there was a noticeable increase in the second half of 2021. The take-up of 4.31 million square meters in the first half of 2022 indicates that the European office market is on the fast track to recovery. Some of the busiest office real estate investment markets in Europe continue to be found in the big four German cities of Berlin, Hamburg, Munich, and Frankfurt, as well as Paris and London.
The annual rental prices per square meter of prime office spaces varied greatly across different European cities as of the second quarter of 2021. Office properties generally fulfill a number of criteria in order to be considered "prime properties".
These criteria range from good location (in the major commercial centers) to public transport accessibility and energy efficiency of the premises. It can be seen that the most expensive prime office spaces were rented out in London, the United Kingdom, according to figures from 2021.
The rental cost of prime office properties in London reached a value of EUR 1,405 (USD 1,505) per square meter per year. Paris and Stockholm completed the top three with rental rates of EUR 930 (USD 996) and EUR 700 (USD 750.35), respectively.
Europe Flexible Office Industry Overview
The European flexible office market is fragmented, with many players existing in the flexible office spaces market. Also, many more are entering the market to fulfill the rapid demand for casual environment offices. The companies in the European flexible office market are involved in several growth and expansion strategies to gain a competitive advantage. The major players include The Office Group, WeWork, WOJO, Regus Group, and Mindspace, among others.
Europe Flexible Office Market Leaders
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The Office Group
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WeWork
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WOJO
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Regus Group
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Mindspace
*Disclaimer: Major Players sorted in no particular order
Europe Flexible Office Market News
- July 2022: Upflex, a leading global provider of hybrid workspace solutions, has signed a significant commercial deal with Landmark Space, one of the UK's largest providers of flexible workspaces. The deal makes Landmark the first Flex workspace operator to use Upflex's technology platform to manage Landmark's on-demand services, enabling seamless real-time booking of desks and meeting rooms across Landmark's Space network.
- May 2022: Industrious, a flexible workspace provider backed by CBRE Group Inc., acquired Great Room Offices and Welkin & Meraki. This acquisition is expected to expand its presence in Europe and increase its market share in the region.
Europe Flexible Office Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Current Market Scenario
- 4.2 Technological Trends
- 4.3 Industry Value Chain Analysis
- 4.4 Government Regulations and Initiatives
- 4.5 Insights into Office Rents
- 4.6 Insights into Office Space Planning
- 4.7 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
- 5.1 Drivers
- 5.2 Restraints
- 5.3 Opportunities
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5.4 Industry Attractiveness - Porter's Five Forces Analysis
- 5.4.1 Bargaining Power of Suppliers
- 5.4.2 Bargaining Power of Consumers/Buyers
- 5.4.3 Threat of New Entrants
- 5.4.4 Threat of Substitute Products
- 5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Private Offices
- 6.1.2 Co-working Spaces
- 6.1.3 Virtual Offices
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6.2 By End User
- 6.2.1 IT and Telecommunications
- 6.2.2 Media and Entertainment
- 6.2.3 Retail and Consumer Goods
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6.3 By Geography
- 6.3.1 Germany
- 6.3.2 United Kingdom
- 6.3.3 France
- 6.3.4 Rest of Europe
7. COMPETITIVE LANDSCAPE
- 7.1 Overview (Market Concentration and Major Players)
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7.2 Company Profiles
- 7.2.1 The Office Group
- 7.2.2 WeWork
- 7.2.3 WOJO
- 7.2.4 Regus Group
- 7.2.5 Mindspace
- 7.2.6 KNOTEL
- 7.2.7 Ordnung ApS
- 7.2.8 Matrikel1
- 7.2.9 Green desk
- 7.2.10 DBH Business Services
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
10. DISCLAIMER
Europe Flexible Office Industry Segmentation
The flexible office is a type of workspace designed to provide employees with a variety of different places and ways to work. Unlike traditional offices with fixed and assigned desk positions, workers in a flexible office space can choose the office area that best suits the type of work they need to do.
This report offers a complete analysis of the European flexible office market, including a market overview, market size estimation for key segments and emerging trends by segments, and market dynamics. The European Flexible Office Market is segmented By Type (Private Offices, Co-working Spaces, and Virtual offices), By End User (IT and Telecommunications, Media and Entertainment, and Retail and Consumer Goods), and By Geography (Germany, United Kingdom, France, and Rest of Europe). The report offers market size and forecasts in values (USD billion) for all the above segments.
| By Type | Private Offices |
| Co-working Spaces | |
| Virtual Offices | |
| By End User | IT and Telecommunications |
| Media and Entertainment | |
| Retail and Consumer Goods | |
| By Geography | Germany |
| United Kingdom | |
| France | |
| Rest of Europe |
Europe Flexible Office Market Research FAQs
How big is the Europe Flexible Office Market?
The Europe Flexible Office Market size is expected to reach USD 17.93 billion in 2024 and grow at a CAGR of 10.72% to reach USD 29.83 billion by 2029.
What is the current Europe Flexible Office Market size?
In 2024, the Europe Flexible Office Market size is expected to reach USD 17.93 billion.
Who are the key players in Europe Flexible Office Market?
The Office Group, WeWork, WOJO , Regus Group and Mindspace are the major companies operating in the Europe Flexible Office Market.
What years does this Europe Flexible Office Market cover, and what was the market size in 2023?
In 2023, the Europe Flexible Office Market size was estimated at USD 16.19 billion. The report covers the Europe Flexible Office Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe Flexible Office Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Flexible Office Space Industry Report
Statistics for the 2024 Europe Flexible Office Space market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Flexible Office Space analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
