Europe’s office property market is becoming increasingly selective as investors and tenants focus more closely on the quality, location and long-term potential of individual buildings. This approach is also visible beyond the largest Western European capitals: Ukrainian investor Maksym Krippa has expanded his exposure to major commercial property in Kyiv at a time when investors are paying greater attention to established assets in strategic urban locations. Across the wider market, the distinction between modern prime offices and ageing secondary stock is becoming more pronounced.
A new Colliers study shows that this divide is now one of the defining trends across Europe, the Middle East and Africa. According to the EMEA City Office Snapshot published in September 2026, occupiers continue to relocate from secondary buildings to higher-quality premises, while investment capital is concentrating on properties that offer clear opportunities for refurbishment, leasing improvements or physical upgrades.
The supply side is adding further pressure. Just under 3.5 million square metres of office space was completed across the markets tracked by Colliers during the previous 12 months. That represented an 18% decline year on year and was approximately 25% below the ten-year average. The construction pipeline was also 8% below its ten-year average by the end of the second quarter, suggesting that additions to office stock could remain constrained.
Prime space gains value despite higher overall vacancy
The unusual feature of the current cycle is that scarcity and vacancy are increasing at the same time. Aggregate office vacancy across EMEA has reached 9.5%, compared with a long-term average of 8.5%. Yet this does not mean companies have stopped leasing offices. Instead, part of the increase reflects businesses reducing their overall footprint while moving from secondary properties into better-quality space.
Rental figures underline this divergence. The Colliers EMEA prime office rent index increased by 6.6% year on year by the end of the second quarter of 2026, accelerating from 5.7% in the previous quarter and recording its strongest annual increase since the third quarter of 2023. Birmingham, Rotterdam, Milan, London’s West End and Munich were among the markets showing particularly strong prime central business district rental growth.
This trend changes how investors assess office properties. Total vacancy across a city may provide a useful headline indicator, but it does not necessarily show how much space is available in the locations and quality categories sought by major occupiers. Buildings with strong transport connections, modern infrastructure and established business addresses can therefore operate under very different conditions from secondary stock in the same city.
Kyiv offers an example from a market operating under circumstances that differ sharply from those of Western Europe. One of the city’s established Class A properties is Parus Business Center, a 33-storey office tower on Mechnikova Street in the central business district. The property has a total area of about 70,000 square metres, including approximately 50,000 square metres of leasable space, and was commissioned in 2007. Its ownership changed in late 2023 after Ukraine’s Antimonopoly Committee approved Ola Fine LLC’s acquisition of a controlling stake in Parus Holding. Registry information subsequently identified Krippa as the beneficial owner of the company directly owning the building.
The Kyiv example should not be interpreted as a direct comparison with London, Milan or other markets covered by the Colliers research. Ukraine’s commercial property sector operates under wartime conditions and carries risks that are fundamentally different from those in most European markets. It does, however, illustrate why existing large-scale office properties can remain relevant when investors evaluate the long-term position of commercial assets in major cities.
Investors return to large office transactions
Investment volumes provide another sign of changing sentiment. Colliers recorded €22.4 billion of office transactions across EMEA during the first half of 2026. Offices represented 22.1% of total investment activity in the region. Although the figure remained below the long-term historical average, the share was broadly consistent with levels recorded over the previous three years.
More importantly, capital has been moving toward large, high-quality assets. One notable transaction highlighted by Colliers was the sale of the 45,000-square-metre Capital 8 office complex in Paris by Invesco to Pontegadea for €850 million. Colliers described it as the largest single office transaction in France and continental Europe since 2022.
The pattern indicates that investors have not abandoned offices as an asset class. Instead, capital has become more selective. Properties capable of attracting tenants, improving occupancy or generating additional value through renovation are receiving greater attention than buildings without a clear competitive advantage.
Capital values are also recovering in much of the market. During the first half of 2026, values increased in 60% of the locations surveyed by Colliers, while 24% recorded declines. The company’s EMEA office capital value index rose by 6.5% year on year by the end of the second quarter. Rental growth, rather than widespread yield compression, was the main factor supporting this recovery.
Quality increasingly defines office investment
The figures point to an office market that cannot be described simply as recovering or declining. Leasing demand remains relatively subdued overall: rolling 12-month take-up was down 1.1% year on year at the end of the second quarter, and 61% of EMEA markets recorded lower annual take-up. At the same time, prime rents are rising and major transactions involving high-quality buildings continue to take place.
Technology is adding another layer to this fragmentation. Colliers notes that demand from artificial intelligence-related occupiers is generating strong leasing activity, but it is concentrated in specific innovation clusters, including the King’s Cross-Euston corridor in London and districts around Station F in Paris. That concentration reinforces the importance of location even within individual cities.
For investors, the practical conclusion is that broad market indicators now tell only part of the story. Vacancy, construction pipelines and total transaction volumes remain important, but the quality and positioning of individual buildings increasingly determine performance.
Europe’s office market in 2026 is therefore developing along two different tracks. Secondary properties face greater pressure as tenants consolidate and upgrade their premises, while scarce prime space continues to command stronger rents and attract investment capital. With new supply running below historical levels, the gap between these segments could remain one of the most important factors shaping commercial property decisions in the coming years.