The EMEA office market is showing signs of recovery, though disparities persist between prime and secondary assets. According to the latest EMEA City Offices Snapshot (March 2025) from Colliers, nearly half (48%) of EMEA markets experienced an increase in leasing activity, while others faced ongoing challenges. Demand remains concentrated on high-quality, ESG-compliant office spaces in core business districts, driving rental growth in major financial hubs.
Prime Markets Outperform Amid Evolving Demand
The shift towards premium office spaces continues to define market dynamics. Occupiers are leveraging lease expirations and breaks to upgrade to higher-quality offices while optimizing space efficiency. This has maintained strong demand for modern, sustainable office properties, while secondary locations are increasingly reliant on rent incentives to attract tenants.
Investment Momentum Strengthens
After a period of turbulence, office investment volumes across EMEA rebounded to €48bn in 2024, reflecting a 4.7% year-on-year increase. While this figure remains 53% below the 2019-2023 average, a renewed flow of transactions in the latter half of the year signals improving investor confidence.
Large-scale transactions have been particularly prominent in Germany, Poland, and the UK. Notable deals include the €280m acquisition of Warsaw Unit, four €100m-plus transactions in Germany, and Greycoat’s £180m purchase of 90 High Holborn in London. Institutional investors also continued their strategic portfolio expansions in Stockholm.
Key Market Trends by Country
United Kingdom: London's West End saw rental growth of 19%, while the City remained active with major lease agreements.
France: Paris La Défense recorded 82,000 m² of take-up, marking a 46.5% quarterly growth.
Germany: Berlin (+9.9%) and Munich (+28%) saw strong leasing activity, while Cologne retained the lowest vacancy rate (3.8%).
Spain: Madrid experienced a 30.9% rise in take-up, with prime rents increasing in Barcelona.
Netherlands: Amsterdam’s demand softened (-17.7%), pushing vacancy rates to 8.2%.
Poland: Warsaw’s prime office rents rose by 3.6%, with sustained investment interest in premium assets.
UAE: Dubai’s prime office rents surged by 18.2%, reflecting robust corporate demand.
Outlook for 2025: Positive Indicators for Growth
Despite vacancy rates remaining above the long-term average (8.9%), a limited supply of prime office space is expected to sustain rental growth throughout 2025. Investor sentiment is improving, with capital values stabilizing and increasing demand for value-add investments. The trend of repurposing older buildings into mixed-use developments and sustainability-focused refurbishments is also accelerating.
Damian Harrington, Head of Research | Global Capital Markets & EMEA at Colliers, commented: "The EMEA office market is on a recovery trajectory, albeit with disparities between prime and secondary assets. With rental growth persisting in key markets and investor confidence returning, we anticipate stronger performance in 2025, particularly for ESG-compliant, modern workspaces."
For further insights, download the full EMEA Offices Snapshot (March 2025) report from Colliers: Colliers Research.
Photo by Ronnie Overgoor on Unsplash
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