Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
More stories for you
Europe’s average office occupancy rate has seen a slight uptick from 59% to 60% over the past six months, according to Savills. This figure remains below the pre-pandemic average of 70%, but signs of recovery are emerging in various markets.
Madrid leads the continent with an impressive occupancy rate of 66%, attributed to a high rate of city-center living, shorter commutes, and a robust in-office culture, particularly on peak days.Â
Prague has also made significant strides, reaching a 60% occupancy rate for the first time, largely due to the adoption of stricter hybrid work models by many companies.Â
Dublin is experiencing a gradual revival in its occupancy rates, driven by increased demand from the tech sector, where many companies are resuming hiring.
London’s occupancy has seen modest gains as well, with the West End reaching 63% and the City at 57%.
Occupancy levels during peak days—Tuesdays (68%), Wednesdays (67%), and Thursdays (65%)—are nearly back to pre-pandemic levels, indicating that offices are bustling on these days much like they were before COVID-19.
Mike Barnes, an Associate Director in Savills’ European commercial research team, noted that European office occupancy rates outpace those in sampled U.S. cities, which remain between 30-40%.Â
Factors contributing to this disparity include a higher rate of city-center living, shorter commutes, superior public transport, and a stronger in-office work culture in Europe.
Christina Sigliano, EMEA Head of Global Occupier Services at Savills, highlighted that resilient occupancy rates are boosting office demand, with a 6% year-on-year increase in European office take-up for the first half of 2024.Â
She referenced forecasts from Oxford Economics predicting an additional 1.5 million office-based jobs across the EU over the next five years, suggesting continued recovery in office demand in key locations.
Recent workplace trends include a focus on supporting neurodiversity, rethinking or downsizing underutilized office spaces, particularly on less busy days like Fridays, and some companies relocating from prime central business district areas to more cost-effective, well-connected, and environmentally sustainable alternatives.
