While the final quarter of 2025 saw take-up fall by 10% YoY as occupier caution remained elevated and geopolitical factors extended the length of decision-making periods, Savills says that the volume of requirements it is tracking in the market remains strong and therefore it anticipates a 3% increase in take-up YoY.
This will make 2026 the strongest year for the European office market since 2022.

Savills says that Frankfurt’s (+45%) and Dublin’s (+40%) markets performed most strongly against their respective five-year averages in Q4 2025, led by megadeals signed by Commerzbank and Workday. Southern European and CEE markets continue to support headline leasing figures, driven by strong domestic economies and more generally, the banking and technology sectors become more active over the course of last year.

Mike Barnes, Director in Savills European Commercial Research team, says: “Overall, the picture for the European office market is one of stability erring towards positivity: Eurozone services PMI reached 51.9 during January 2026, indicating a modest level of economic expansion as hiring sentiment reached its highest level for 12 months, whilst the Eurozone unemployment rate is at a record low. These indicators, plus a dearth of development activity, look set to support further occupier activity and maintain rents in the coming months.”

By the end of 2025, European prime office rents had grown by an average of 3.4%, led by London City (+18%), Frankfurt (+13%) and Munich (+7%). Warsaw (+6%) and Budapest (+7%) also recorded strong growth after previous rental stagnation, given a shortage of prime stock, according to Savills.

The international real estate advisor anticipates an average 3.7% prime rental growth across European markets in 2026, alongside a continued slow fall in lease incentives. Over the course of 2025 average rent-free periods for European prime office space fell from 13% of lease value to 12% of lease value, says Savills, although still remain at historically generous levels, and in Oslo, Munich, Madrid and Dublin lease incentives from landlords also dropped as a shortage of new deliveries in these markets continues to restrict occupiers.

Christina Sigliano, EMEA Head of Global Occupier Services at Savills, adds: “While the last couple of months of 2025 saw occupier activity slow, we are tracking a substantial number of requirements across Europe which should transact this year and therefore will continue to support ongoing office rental growth.”