This report is designed to provide our clients with an immediate view on prime rents and yields across major markets and sectors in the region as at the end of the quarter. In 2015, prime European hotel yields - split up by operating type - have been included in this publication for the first time.
Strong rebound in investment activity, delivering a record-high second-quarter volume Occupier demand has strengthened further throughout the region due to private consumption and export growth The growing construction pipeline is starting to impact vacancy rates and rental growth Continuing downward pressure on yields
Increased strength in demand sends the EMEA Prime Rent Index up by 40 basis points to 2.1%. Strong growth in leasing activity across Western Europe while take-up across Southern Europe pales as only two markets see positive increase in levels. EU-28 Vacancy Index falls for a third consecutive quarter highlighting continued shortage of supply in the market. CEE markets continue to dominate development completions across EMEA.
• Occupier demand across EMEA strengthened even further in Q2 and continues to have the twin effects of higher rental rates and reduced occupier choice, particularly for large CBD units. • Big differences exist both between and within cities. Space availability shrank in most core city office markets in Western Europe, but in Paris remained unchanged. In London prime City rents rose over the quarter while the West End remained stable. • Mixed signals from the Moscow office market: reversal in the year-long downward trend in leasing levels, but postponement of substantial amount of development highlights continuing concerns over the market.
Comparing 56 EMEA, this Fit-Out Cost Guide is the most comprehensive we have ever produced, allowing users to look up indicative costs for fitting out office space across EMEA and inform them on the variances in the EMEA fit-out markets.