"Before the pandemic, physical occupancy was around 70% and now we expect it to stabilise at around 60%. Survey results indicate that both companies and employees are finding a balance at this level between working in the office and from home," says Pavel Novák, Head of Office Agency at Savills, and adds: "The return of employees to offices is also supported by a gradual improvement of the work environment across the market, with a large number of companies opting for positive motivation and making substantial investments in their office spaces. However, we are also observing that more and more companies are adopting stricter hybrid work policies.

"Except for Fridays, when offices remain less occupied, the physical occupancy in Prague exceeded the 60% threshold on all other working days. This may be due to the need for personal interaction among employees, as well as better facilities and a quieter work environment. Companies are supporting this trend by seeking the best possible solutions to ensure that employees feel comfortable in the office and have optimal conditions for their work. We see that Friday remains flexible for work, although fewer employees are working from home on Fridays compared to a year ago," says Lenka Pechová, Senior Research Analyst at Savills.

Madrid’s office occupancy rates continue to outperform other European cities, supported by a higher proportion of residents living in the city centre, shorter commute times and a positive office atmosphere. London-based companies are focusing on having their employees in the office four days a week. Tech companies are more lenient in this regard, although they are also starting to require more frequent in-office attendance from their employees.

Full report here.