Trends and Market Outlook: Office rents in European capital cities in 2025

Office rental markets across Europe’s capital cities are experiencing varied trends in 2025, influenced by factors such as economic conditions, remote work adoption, and demand for high-quality, sustainable office spaces. While some cities are seeing stable or rising rents, others are facing downward pressure due to increased vacancy rates and shifting tenant preferences.

In London, prime office rents in central business districts have remained relatively stable despite ongoing challenges in the commercial property sector. The demand for high-quality, ESG-compliant office spaces continues to support rental levels, while secondary office spaces face declining interest, leading to higher vacancy rates and rent reductions. Paris is witnessing a similar trend, with top-tier office spaces in La Défense and the city center maintaining strong demand, while older buildings struggle to attract tenants.

Berlin remains one of the more resilient markets in Germany, with modest rental growth driven by continued demand in the technology and finance sectors. Other German cities, such as Munich and Frankfurt, have experienced a slight softening in rental prices due to an increase in available office stock. Madrid and Barcelona are seeing stable rents in prime locations, supported by a strong business climate and continued interest from international investors.

In Rome and Milan, office rents have remained steady, but tenant preferences have shifted towards modern, flexible workspaces. Companies are increasingly seeking energy-efficient buildings with enhanced amenities to accommodate hybrid working models. Similar patterns are observed in Amsterdam, where office supply is adapting to changing workplace needs, and vacancy rates in outdated properties have increased.

Warsaw continues to be one of Central Europe’s most dynamic office markets, with rents maintaining an upward trajectory in prime locations due to sustained corporate interest. In Prague, demand for premium office space remains stable, while rental growth has slowed in secondary locations. Vienna has shown resilience, with steady rental levels in core business districts and a focus on high-quality office developments.

The overall outlook for European capital cities suggests a continued shift towards high-quality, energy-efficient office spaces, as businesses prioritize employee well-being and regulatory compliance. The disparity between prime and secondary office stock is expected to widen, with older properties facing higher vacancy rates and potential rent adjustments. As economic conditions evolve, rental trends will likely continue to reflect the ongoing transformation in workplace dynamics and corporate real estate strategies.

Source: comp.