The report European 0ffices Outlook 2020 indicates that the lack of available quality spaces in the European Central Business Districts (CBD) is limiting the options of the companies which need work spaces by lowering the average availability rate from 6.1% to 5.4% in the last 12 months.
The lack of available space is causing a great boost in demand for new offices in the secondary markets of the different markets, where investors increasingly look for more business opportunities to renew, rent and sell. There is also an increase in the demand for flexible work spaces all over Europe.
Director of Research at Savills Aguirre Newman, Gema de la Fuente, explained that «the average office rent in the main European CBDs increased around 6.2% in the last 12 months, compared to the 4% it registered in the previous 12 months. In Spain, the increase in Madrid is in line with the European average, at 6.15% yoy and significantly above in Barcelona with a 10% yoy increase in 2019».
For 2020, it is expected for the office rental prices to register a 2% increase within the cities analysed by Savills, although Madrid and Barcelona are expected to register increases above the European average.
In terms of coworking, operators contracted a total 687.000 sqm between January and September 2019, 15% more yoy.
In terms of prices, London and Paris registered the highest prices, with 819 euro and 700 euro respectively, compared to the average of 430 euro in Madrid.