Professional services and tech sector drive European office demand
According to Savills latest research, professional and business services accounted for 24% of European office take up in H1 2026, down from 26% in 2025, as lawyers, accountants and consultants remained active.
The tech sector rose from 14% to 22% of total activity, an increase due to both expanding AI firms and traditional tech firms resuming their activity.
The banking, insurance and finance sector fell from 21% to 16%, which remains more in line with the long term average share. Flex offices accounted for 3% of office demand, in line with last year, as companies seek interim space amid prime vacancy shortages, and show a preference for plug and play services.
Average European office vacancy rates remained stable at 9.4% during Q2 2026. Savills recent analysis shows that CBD vacancy rates currently average 4.9%, with prime CBD vacancy rates estimated at around 2%, adding upwards pressure on prime rents. Relative to previous cycles, the CBD vacancy rate is comparatively lower, reflecting occupiers’ heightened preference for centrally-located office stock.
Mike Barnes, European office research director at Savills, says: “During H1 2026, Dublin (+63%), London West End (+36%), Berlin (+30%) and Munich (+28%) leasing activity performed strongest against their respective five year H1 averages. London West End was supported by strong activity within the AI sector, while Berlin and Munich had large deals from Commerzbank and JetBrains, respectively. Strong owner-occupier activity from Dublin City Council during Q1 2026 lifted the Irish capital above its historic levels.”
Prime rents rose by an average of 3.7% during the 12 months to the end Q2 2026, says the international real estate advisor. Munich (+11%) Frankfurt (+10%) and Warsaw (+10%) led the charge, as occupiers report a shortage of prime stock across the major cities. The weakest newbuild development pipeline in over ten years is sustaining rental growth across the major markets.
Christina Sigliano, EMEA head of global occupier services at Savills, adds: “Our analysis indicates that average prime office rents in Europe have risen by 27% since the end of 2019, three times the average secondary CBD office rent of +9%. This is largely attributed to occupiers seeking better quality space in central locations to attract and retain staff, alongside looking to modernise their office premises to reduce Scope 3 emissions.”