This blog was written by Wouter van ‘t Grunewold, Market Intelligence analyst at Savills in the Netherlands, and Lex van Ingen, Consultant at Workthere.nl.

During the COVID-19 pandemic, many tech firms embraced hybrid ways of working as their go-to method of working. What was initially expected to be a temporary solution to cope with social distancing rules, quickly became the de-facto way of working for many employees in the tech industry.

Consequently, tech firms have been considering leasing flexible office space. Data from Workthere, Savills’ subsidiary that helps companies in finding flexible office space, shows that tech companies have shown stability in enquiries for flexible office space in the G5-cities. At the same time, other business sectors have been impacted more by macroeconomic trends and external shocks. In recent quarters, as the tech sector recalculated growth expectations amid uncertainty about the future, there has been an increase in enquiries for flexible office space.

At the other end of the spectrum, there is a group of tech workers that are only involved in computer-based employment and have great flexibility in where they work. Some of these workers have made the move to full time remote work. Provided that internet connections are good, time zones are comparable to Dutch time (CET, CET – 01:00, or CET + 01:00), and air connectivity is good, some workers have relocated to places that have a greater emphasis on health, wellness, and overall lifestyle. Based on several indicators Savills has analysed and ranked 11 destinations that are appealing for long-term Dutch remote workers in the tech sector. We have included five indicators, which we have ranked on scale of one to ten for each city respectively. Especially Spain and Portugal are attractive. Largely boosted by perfect air connectivity, a favourable climate and relatively affordable housing options.

The major adoption of hybrid ways of working, flexible working, and even remote working in the Dutch tech sector means that office occupancy rates have been structurally lower than pre-COVID-19 pandemic averages. Savills’ best estimate is that office occupancy rates in the Dutch tech sector fluctuate around 55%, with most employees working in the office two to three days per week. This is lower than ‘traditional’ sectors such as Business Services and Real Estate, but comparable to other EMEA and Americas occupancy rates.

Do you want to read more about the Dutch technology sector? Read the Spotlight report: Wins and Losses in the Tech Sector here.