Rising office prices make the situation of companies more difficult

By: Trademagazin Date: 2022. 08. 17. 09:44

Financial and construction costs are also increasing, but demand is falling due to the dangers of recession: the European office market is facing extraordinary challenges, vg.hu points out.

The European office market is facing the most difficult market conditions since the financial crisis. Financing is becoming more expensive: interest rates are rising, refinancing loans are becoming more expensive, and construction costs are increasing.

According to Bank of America’s analysis, rising interest costs on both sides of the ocean are putting office owners in an increasingly difficult situation, as it becomes more expensive to refinance their loans. Since the beginning of the pandemic, it has become increasingly certain that the office market could be one of the biggest losers of the restrictions. The home office is widespread, companies have realized that there is no need to maintain large, expensive offices in the city center, many activities can be carried out from home, and in addition, they save a significant amount of costs.

In DLA Piper’s survey this spring, only half of the respondents believed that the proportion of people working in offices will continue to rise after the epidemic.

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