Vacancy rate of office real estate in Europe 2021-2023, by city

Vienna, Luxembourg, and Athens were the markets with the lowest vacancy rates in Europe in the fourth quarter of 2023. Vacancy rates are a measurement of unoccupied properties during a given period and are a good indication of an area’s desirability and opportunity for development. High vacancy rates can indicate an economic downturn, a lack of demand, or possibly that standards do not meet speculative renters’ needs. Low vacancy rates are, in general, considered a good thing as it means there is a good level of demand from customers, although low vacancy rates may also show a need for more development which is not being met. Since the beginning of the coronavirus (COVID-19) pandemic, vacancy rates in the office sector have been on the rise because of declining occupiers' demand.  

The major European office markets?

London, Paris, and Stockholm were the most expensive markets for office real estate in Europe in 2023. In London, prime office space, which refers to a property of the highest quality, optimal location, and standard dimensions that are in accordance with the local demand, was able to fetch a staggering price of 1,862 euros per square meter. When it comes to total stock, Berlin ranked among the largest markets in Europe. 

Where is office space most profitable?

According to an October 2023 forecast, Manchester, Bristol, and Edinburgh are expected to see the most return on investment by 2027. Industry experts forecast that investment will have better prospects than development, and that central city offices will perform better than suburban offices.