Little danger of office oversupply
Any fears of office oversupply in Europe should be ignored, says Savills, which has found that more than half (51 percent) of European office space under construction is already committed to occupiers. Office completions across the 17 European top cities monitored by Savills are set to total 3.2 million square metres in 2018, before increasing by 28 percent to 4.1 million square metres in 2019. The adviser calculates that 58 percent of completions for the second half of 2018 and 40 percent for 2019 have been secured by future tenants. Available supply for both existing and new buildings will therefore only account for about 7 percent of office stock across European cities. The highest levels of availability can be found in Warsaw (13 percent), Dublin (12 percent) and Madrid (11 percent). Europe’s most undersupplied office locations are Berlin (1.4 percent), Paris (2.1 percent) and Munich (2.5 percent).