Many European cities have limited supply, resulting in low vacancy rates and supporting prospects for rental growth.
Stockholm has the highest vacancy rate in whole city offices at around 14%, while its residential vacancy is the lowest. Amsterdam shows balanced vacancy rates across sectors with logistics at about 10%. Madrid has low vacancy rates across all sectors, with residential being particularly low. Paris has varied distribution with high street retail having the highest vacancy, while residential and logistics are lower. Munich displays low vacancy rates across all sectors, with residential being the lowest and whole city office slightly higher.
This trend of low vacancy rates suggests potential for rental growth due to property scarcity. Sector-specific trends show differences between CBD and whole city offices, with Stockholm notably higher in the latter. Low residential vacancy in Madrid and Munich could lead to increased rental prices. Amsterdam's higher logistics vacancy might reflect less demand. Paris's higher retail vacancy might indicate retail dynamics changes.
Overall, these low vacancy rates in prime locations suggest strong rental growth potential, making these markets attractive for real estate investments.
Source: https://www.mandg.com/dam/investments/institutional/shared/documents/insights/2024/mandgre-global-rea-estate-outlook-2025.pdf