Further evidence of the bifurcation between primary and secondary offices has emerged, with prime European office markets being projected to deliver the highest return of any property sector between 2024 and 2028, according to research from AEW.

In a surprising prediction, the manager says prime office locations are set to return 9.6 percent, on average, over the next five years. This projection has been driven by the office sector’s general repricing, which AEW says was larger than anticipated in both 2023 and the first quarter of 2024. This repricing is also believed to be continuing in the second quarter of 2024. A stronger rebound is also expected for offices compared with other sectors after this sharper repricing. The precise timing of the rebound in offices, however, remains as uncertain as ever. This is due to persistent negative sentiment towards the sector and ongoing and incoming refinancing challenges.

Not all prime office markets are in a comfortable pos