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completions have been gradually increasing year by year since
2013 and are set to move above the 10-year average in 2017
and 2018. This is likely to reduce the rental growth potential for
Europe as a whole over the next few years, but there will still be
variation by location.
Broadly speaking, office-based employment growth across
the Eurozone and the UK should support office occupier
demand over the next two years, but it is not expected to
match development completions in the aggregate. As the
unemployment rate declines, the ability of markets to add jobs
at the same rate also decreases; that will impact net absorption.
However, there will be differences in performance with Macron’s
France expecting employment growth to pick up in 2017-18, while
near full employment will slow job creation and net absorption in
Germany and the UK.
Office employment growth is set to
slow from 2.5% pa over 2014-16 to
1.5% pa over 2017-19.
EUROPE OFFICE-USING JOB GROWTH
Source:
Oxford Economics
0
200
400
600
800
1,000
1,200
2014 2015 2016 2017 2018 2019
000’s