EMEA

Overview of the region

European governments have made varied interventions to keep their economies growing, including investment incentives and tax breaks. However, new challenges are acting as a brake on progress.

The January IMF forecast for 2022 was for further growth of 3.9 percent in 2022, but this was significantly reduced in its April report to 2.8 percent. Russia’s war in Ukraine is leading to shortages of factory inputs supplied by both nations, as well as exacerbating ongoing port bottlenecks and shortages of truck drivers, which is all serving to extend the duration of the recovery.

What our index tells us about the region

The following shows the top 10 most expensive locations in the region with 8 out of 10 locations from corporate downtown office archetype.

As expected, the top 10 list is dominated by corporate downtown office locations, with the base assumptions are that leased spaces are within multi-tenanted Grade A sustainable office buildings, and in a CBD area of the city, where labour costs are generally high, and construction activities are restricted to non-business hours.

The complete ranking at-a-glance of all locations within the EMEA portfolio (excluding Qatar) is provided in the bubble diagram below, and both archetypes have been combined for this snapshot.

Moving to the IT & AV costs, the map below shows the average cost by country, with resourcing rates in the UK higher in comparison to the rest of the region, and both cost components of resourcing and travel taking up more than 24 percent of the overall IT & AV costs in this region.