Europe Coworking Spaces Market Size (2024 - 2029)

Europe Coworking Spaces Market Analysis

The Europe Coworking Spaces Market size is estimated at USD 6.55 billion in 2024, and is expected to reach USD 10.63 billion by 2029, growing at a CAGR of 10.37% during the forecast period (2024-2029).

• The coworking spaces market in Europe defied the odds in 2023, according to Workthere. The flexible office specialist estimated that operators would continue to look for top-of-the-line spaces with more emphasis on facilities and sustainability in 2024.
• With talent attraction and retention at all-time highs, there will continue to be a demand for top-of-the-line space, and operators will need to step up their game by offering more amenities. To compete for tenants and attract new ones, operators are already setting standards that go beyond gyms, yoga, cafes, and outdoor space to include amenities like five-star hotels with private chefs or rooftop bars.
• While occupiers are looking for the best locations, they are also looking for locations that offer the best transport connections and full amenities for their employees. For many markets, this has led to an increase in the number of flex office operators operating in central business districts (CBDs), which is expected to continue in 2024. On the other hand, a shortage of office space in Europe, particularly in major cities such as Madrid, Munich, and Barcelona, where vacancy rates are well below 5%, will have a major impact on occupancies and availability.
• Operational costs have increased over the last two years, impacting profit margins for a number of operators, and while the desk prices increased at the high end in most European cities, it has been more difficult at the low end. Operators are projected to place a genuine emphasis on profitability in 2024 by looking for opportunities to grow margin outside of desk rates and by looking at ancillary revenue, including through more sales of meeting rooms and events, more sales of coworking desks, or upselling technology packages to their customers.

Europe Coworking Spaces Industry Segmentation

Coworking is an arrangement where workers from different companies share an office space, allowing for cost savings and convenience using common infrastructure.

The European coworking spaces market is segmented by business type (new spaces, expansions, and chains), business model (sub-lease model, revenue sharing model, and owner-operator model), end user (independent professionals, startup teams, small to medium-sized enterprises (SMEs), and large-scale corporations), and country (the United Kingdom, France, Germany, Spain, Italy, and the Rest of Europe). The report offers market sizes and forecasts in value (USD) for all the above segments.