EUROPE, MIDDLE EAST AND AFRICA
Fit-out cost landscape across EMEA
Explore fit-out trends across Europe, the Middle East and Africa, where market conditions, occupier priorities and cost drivers vary significantly by region. From premium office shortages in major European hubs to evolving demand across the Middle East and Africa, these insights highlight the key forces shaping fit-out decisions across EMEA.
Europe
Western Europe invests to compete for global talent
Zurich’s high-specification fit-out cost of ₣4,891 reflects the traditionally expensive construction market in Switzerland – and fit-out costs across the region are being driven further upwards by financial and professional services firms leading a drive for higher quality, with significant investment in luxury finishes and amenities.
At EUR €4,711 per m2, Munich’s high-specification costs are outpacing Berlin (€3,996) and Paris (€4,015). Dublin (€3,693) and Milan (€3,682) are not far behind.
These historically high costs reflect the knock-on impacts of the pandemic-era pause in development, which has led to the limited availability of prime, Grade-A commercial space across many European cities. Supply chains are also becoming more localised which comes with a price tag when compared with foreign suppliers, although this does increase their resilience to the impact of geopolitical disruption.
At the same time, the global competition for talent in key sectors such as technology, media, legal, financial and professional services is driving occupiers to not want to compromise on quality or the amenities they offer to staff and clients – now ranging from sleep pods and golf simulators to restaurants with Michelin-starred chefs.
The London weighting
In the UK’s capital, there’s ongoing demand for major, large-scale HQs (over 200kft2) in both the City and Canary Wharf. London remains the most expensive UK market for fit outs by a wide margin – at least £1,700 per m2 (£161 per ft2) more for high-spec compared to UK regional cities. Drivers include a shrinking pool of Tier 1 contractors and M&E specialists, which includes sectors like data centres.
“London continues to flex its strength as a financial sector heavyweight. It is these businesses that will be driving the next wave of major fit outs across the capital.”
Gordon Graham, Director, CM London
Narrowing the cost gap
This year’s report also includes several new European cities, such as Warsaw, which typically signals broader trends for Central Eastern European markets. Looking at medium-specification costs as an indicator of the market, they sit at zł8,343 per m2, significantly less than all other EU markets featured, reflecting the generally lower labour and local material costs.
However, as multinational companies opt for more consistency in workspaces across the world, we are continuing to see little difference in the quality and requirements of Central and Eastern European fit outs from their Western neighbours. As such, we expect the cost gap to narrow in the coming years as more and more organisations require consistent, higher-quality fit outs.
Madrid and Milan also join as new additions, both thriving markets for occupiers, with similar high-specification fit-out costs to one another.
“We’re seeing lots of occupier interest outside of traditional hubs, with businesses taking offices to people rather than the other way around.”
Luke Bartolo, Head of Occupier and Portfolios, Europe
Middle East
Resilience underpins Middle Eastern momentum
Recent geopolitical tensions have introduced a degree of short‑term uncertainty across the Middle East, resulting in selective pauses and more cautious cost reassessments. Disruption to decision‑making and supply chains has, however, remained limited, and these impacts are widely viewed as temporary. The region has a strong track record of absorbing shocks and rebounding, with the broader outlook for commercial real estate remaining positive.
In the 12 months preceding the current conflict, demand for premium office space across key hubs continued to strengthen, supported by economic diversification, population growth and international investment. High‑profile developments in districts such as Dubia’s DIFC, Abu Dhabi's ADGM and Riyadh’s KAFD are setting new benchmarks for workplace quality and experience, reinforcing occupier expectations around performance, amenity and long‑term value. While imported materials and specialist labour have contributed to cost escalation, this has emerged from a relatively low base and within a fundamentally resilient market.
Rebalancing and evolution in KSA
Saudi Arabia continues to anchor regional commercial activity. The re‑sequencing of some giga programmes reflects market maturation rather than reduced momentum, with occupier demand becoming more targeted and quality‑led. Greater emphasis is being placed on efficiency, long‑term performance and workplace outcomes. Giga schemes delivered in the Kingdom continue to attract strong international occupier demand. While delivery optimisation is influencing short‑term phasing, this is not expected to impact the depth of demand. Vision 2030 remains a key driver, with global occupiers increasingly localising operations in response to regulatory change, growing in‑country capability and Saudi Arabia’s role as a regional business hub.
“What we’re seeing is a structural shift. Many global clients are embedding their operations within the Kingdom as part of Vision 2030. Even in uncertain conditions, occupiers continue to prioritise quality, with fit outs focused on flexibility and long‑term resilience.”
Nadim Farah, Director and Corporate Occupier Lead for KSA
Navigating short‑term pressures with confidence
Prior to the conflict, average high‑specification office fit‑out costs stood at approximately AED13,946 per m² across Dubai and Abu Dhabi, compared with around SAR14,500 per m² in KSA, reflecting strong demand and a higher reliance on specialist and imported inputs for in‑Kingdom delivery. Overall, current conditions point to recalibration rather than retreat, reinforcing the region’s resilience and long‑term growth trajectory.
“While current events are creating a degree of short‑term caution, the long‑term outlook for the Middle East remains highly attractive.”
John Grant, Head of Occupier & Portfolios, Middle East.
Africa
Reliance on imports drives costs in Africa
Global economic and political trends are shaping Africa’s office fit-out landscape – especially given many African markets’ exposure to currency fluctuations. Even in states like Nigeria, where the US dollar is the primary construction currency, import duties up to 80 percent mean that even with local sourcing of materials, certain specialist kit such as mechanical, engineering and plumbing (MEP) equipment, faces a significant cost hike. This is one factor that makes Lagos the most expensive African fit-out market, with a high-specification cost of ₦3,774,935 per m2.
“Despite local challenges, demand from private businesses in new space is undimmed – from financial firms to multinational professional services companies.”
Wendy Cerutti, Regional Real Estate Lead, Africa
Land and stock availability is generally not a problem for African markets – a distinction compared to many other global regions where a shortage of premium office space is influencing occupier decision-making. However, some desirable locations like Cape Town and Johannesburg are seeing a degree of undersupply due to a series of large fit-outs taking new space – often for call centres and local offices of multinational businesses. Though in general the fit-out demands remain relatively low cost, and Johannesburg’s average medium-specification fit out cost is just R25,318.
Move costs for the region
Across EMEA, the cost of fit outs and the associated move activities has continued to climb, influenced by uneven economic conditions, sustained inflation and wider geopolitical uncertainty. The region has seen upward pressure on fit out, sustainable clearance and reinstatement costs, with contractors consistently highlighting labour shortages and increased material prices as key contributors.
For occupiers, this translates into higher move‑in expenditure, particularly where relocations involve significant technology requirements or the creation of hybrid‑enabled workplaces. Countries such as the UK and Switzerland remain among the priciest markets globally for office fit outs, which in turn drives up the cost of migration, sequencing, decanting and business‑readiness work.
As a result, the EMEA market is shifting toward tighter cost control, more phased and strategically planned moves, sustainable clearances, and a stronger focus on early planning and procurement to help manage volatility and maintain certainty.
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