Market Size of Europe Office Real Estate Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | 4.00 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Europe Office Real Estate Market Analysis
The Europe office real estate market is poised to register a CAGR of more than 4% during the forecast period.
- The performance of the European office real estate market is strongly connected to the growth of the region's economy. Though the European economy is recovering from the consequences of the COVID-19 pandemic, the office real estate industry may take some time to reach normalcy.
- European office take-up fell 14% below the five-year Q1 average during Q1 2023. The markets reporting the largest increase in take-up in Q1 against the five-year average were Oslo (+50%), Prague (+19%) and Madrid (+5%). At the other end, Dublin (-62%), Bucharest (-57%) and Lisbon (-55%) reported the largest decreases. In Lisbon, the drop in take-up is largely due to the lack of stock available. 2022 was a record year for take-up in Lisbon with the highest 272,000 sq m recorded, but it now faces the challenge, much like other markets, of not having enough quality stock for occupiers where there is pressure to let Grade A space.
Europe Office Real Estate Industry Segmentation
Office real estate is the construction of buildings for leasing and selling purposes to companies from different sectors. The Europe Office Real Estate Market is segmented by Geography (Germany, United Kingdom, France, Italy, Spain, Russian Federation, and the Rest of Europe). The report offers the market sizes and forecasts for the European office real estate market in value (USD) for all the above segments.
By Geography | |
Germany | |
United Kingdom | |
France | |
Italy | |
Spain | |
Russian Federation | |
Rest of Europe |
Europe Office Real Estate Market Size Summary
The European office real estate market is experiencing a gradual recovery, closely tied to the region's economic resurgence post-COVID-19. Despite the pandemic's impact on work patterns, demand for office space remains robust, particularly among investors in France and Germany. The market is characterized by a significant variation in office space take-up across cities, with some like Oslo and Prague seeing increases, while others such as Dublin and Bucharest face declines due to limited quality stock. The market's fragmentation is evident, with major investment activities concentrated in key cities like Paris, London, and Germany's major urban centers. Prime office yields have adjusted, reflecting the rising costs of debt, with core markets experiencing the most significant capital value changes.
The office real estate sector continues to be a favored asset class, accounting for a substantial portion of investment volume in Europe. Rental prices for prime office spaces vary widely, with London commanding the highest rates, followed by other major cities like Paris, Milan, and Dublin. The market is poised for normalization by the end of 2023, as companies prepare to meet future demands. Key players in the market include Hochtief Aktiengesellschaft, AF Group ASA, JLL, and Cushman & Wakefield, among others. Recent strategic partnerships, such as CBRE's collaboration with Deepki and JLL's agreement with iO Partners, highlight ongoing efforts to enhance property management and expand market presence across Europe.
Europe Office Real Estate Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Economic Growth
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1.2.2 Urbanization and Urban Renewal
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1.2.3 Foreign Investments in the Sector
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1.3 Market Restraints
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1.3.1 The Uncertainty Surrounding Brexit
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1.4 Market Opportunities
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1.4.1 Technology and Innovations in the Sector
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1.4.2 Co-working and Flexible Office Spaces
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1.5 Value Chain / Supply Chain Analysis
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1.6 Industry Attractiveness - Porter's Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Buyers/Consumers
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1.6.3 Bargaining Power of Suppliers
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1.6.4 Threat of Substitute Products
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1.6.5 Intensity of Competitive Rivalry
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1.7 Government Regulations and Initiatives
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1.8 Technological Trends
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1.9 Insights into Rental Yields in the Office Real Estate Segment
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1.10 Insights into the Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy (%)/Vacancy (%))
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1.11 Insights into Office Real Estate Construction Costs
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1.12 Insights into Office Real Estate Investment in Europe (in Major Cities)
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1.13 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Geography
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2.1.1 Germany
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2.1.2 United Kingdom
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2.1.3 France
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2.1.4 Italy
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2.1.5 Spain
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2.1.6 Russian Federation
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2.1.7 Rest of Europe
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Europe Office Real Estate Market Size FAQs
What is the current Europe Office Real Estate Market size?
The Europe Office Real Estate Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Europe Office Real Estate Market?
Hochtief, Aroundtown SA, Gecina, Engel & Völkers Germany and Savills are the major companies operating in the Europe Office Real Estate Market.