European Office Occupier Markets

Track and compare 36 key real estate markets in Europe with our interactive Office Rental Clock

The public health response to the Covid-19 pandemic continued to determine the economic and real estate market performance in Q4. With a second wave of outbreak accelerating, many countries across Europe imposed further restrictions or lockdowns on its citizenry in October and November. The effect was to reverse a forecast expansion of GDP in the fourth quarter, leading to a double-dip economic contraction in 2020. Momentum had already been fading before restrictions were tightened, reflecting the unpredictability of the situation and households’ and firms’ inability to plan. The extension of government support schemes will help to minimise the fallout, or economic scarring, resulting from the toughened restrictions, but will not prevent it entirely meaning losses will accumulate. As we enter a new calendar year, a further tightening of restrictions has been conducted in many countries. The net effect will be to deepen the immediate economic hit and delay and lengthen the recovery. More positively, the rollout of vaccination programmes across the region offer hope for the end of lockdown-reopening cycles, and the prospect for a return to some semblance of normality.

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JLL's Office Rental Clock demonstrates where each market sits within its rental cycle.
European Office Rental Clock
Exit city view

Source: JLL, December 2020

Note:

This diagram illustrates where JLL estimate each prime office market is within its individual rental cycle at the end of December 2020.

  • The COVID-19 pandemic has had a material impact on real estate investment market performance. Across EMEA there is considerable variation in the extent of the human and economic impacts and the policy response. Regular real estate market activity has been disrupted, and the volume and range of transactions reduced compared with other periods, affecting the performance, trajectory and magnitude of market impacts. Every effort has been made to ensure the data published provides a quantitative and robust assessment of value at our survey date of 31st December. Where prime real estate transactions have not occurred and evidence of actual market performance is absent, notional assessments have be made on the prevailing conditions using our experience and considered judgement.
  • Markets can move around the clock at different speeds and directions.
  • The diagram is a convenient method of comparing the relative position of markets in their rental cycle.
  • Their position is not necessarily representative of investment or development market prospects.
  • Their position refers to Prime Face Rental Values.

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