Munich

The outlook for the office and commercial occupier fit-out market in Munich is positive, underpinned by the city’s strong economic base, diversified occupier profile and continued demand for high-quality workspace.

Average high-specification fit-out costs in the Munich market (€4,711 per m2) rank eighth in the world – a product of its well-established economic position and strong demand across a range of sectors from traditional industrial and manufacturing giants to new professional services and tech firms. This pressure is made more acute by elevated construction and labour costs, combined with longer procurement timelines, which is leading occupiers to adopt phased delivery strategies, apply rigorous value engineering and prioritise core functional elements over more discretionary design features.

At a time when global volatility may put pressure on suppliers, there is a heightened risk to high-cost markets such as Munich. However, our experience is that European supply chains have a high tolerance for withstanding disruption, following the pandemic and other geopolitical shocks of the last decade, which has led them to innovate, localise, hold greater stockpiles, and build overall resilience, albeit at a cost premium.