Madrid’s office occupancy rates continue to outperform other European markets, at 66%, supported by a higher proportion of city centre living, shorter commutes and a strong in-office culture on peak days. Prague now stands at 60% for the first time, as more companies have opted to introduce a stricter hybrid system. Dublin has also reported a gradual revival in occupancy rates, supported by rising tech occupier demand and many companies in the sector seeking to resume hiring. London’s occupancy rates observed modest increases to 63% for the West End and 57% for the City.

The international real estate advisor says that occupancy levels on Tuesdays (68%), Wednesdays (67%) and Thursdays (65%) are almost in line with the pre pandemic levels, so offices are effectively as busy as they were before Covid-19 during peak days.

Mike Barnes, Associate Director in Savills European commercial research team, says: “On the whole, European office occupancy rates remain higher than the US cities we have sampled, where office occupancy remains between the 30-40% mark, given a higher proportion of city centre living, shorter average commutes, better quality public transport, and a stronger in-office work culture.”

Christina Sigliano, EMEA Head of Global Occupier Services at Savills, comments: “Resilient office occupancy rates are supporting office demand and H1 2024 European office take up rose 6% year on year. Given that Oxford Economics forecasts an additional 1.5 million office based jobs over the next five years across the EU, we believe office demand will continue to recover in the top locations. 

“Some of the most recent trends we are observing in the workplace environment is employers trying to understand and support neurodiversity, reimagining or closing office space that is underutilised on less busy working days, such as Fridays, and some occupiers being pushed out of prime CBD locations given rising costs and choosing well-connected, ESG-proof alternatives.”