European office fit-out costs stabilise amid market resilience

The latest EMEA Office Fit-Out Cost Guide 2026 from Cushman & Wakefield indicates that the market is finding its footing despite persistent regional conflicts and trade tariffs.

Office fit-out - Cushman & Wakefield

Covering 53 major cities, the report shows that average fit-out costs reached €1,509 per m2 n 2025—a moderate year-on-year rise of 3.8%.

While previous years saw aggressive price hikes, the current landscape shows a distinct divergence across European markets.

Costs remained flat in several major economies, including Germany (where Hamburg remains the second most expensive city at €2,512/m2), Norway, Belgium, Denmark, and the Netherlands.

The UK was the only market to see a decrease, though it was marginal (less than 0.2%). Despite this, London remains the most expensive city in the region at €2,668/m2.

Notable increases were recorded in Ireland (Dublin rising to €2,300) and Slovakia (Bratislava reaching €1,300).

Zagreb, Croatia, remains the most budget-friendly market with average costs of €750/m2.

Cushman & Wakefield’s survey of 140 general contractors reveals a cautiously optimistic outlook for the sector.

Roughly 60% of contractors anticipate market improvements, a sentiment that jumps to over 80% in Sweden, Portugal, and Germany.

This optimism is bolstered by rising tenant demand, with net office absorption projected to hit 2 million m2 in 2026 and 2.5 million m2 in 2027.

While 57% of contractors expect to raise prices slightly, 78% anticipate their own overheads (labour and raw materials) will increase. This forces a choice between raising client rates or absorbing higher costs through tighter profit margins.

Nic Wilkinson, VP - Project & Development Services, EMEA, said: “Fit out costs and project delivery conditions normalised in most European markets in 2025. Looking ahead, we expect demand for high-quality, experience-led fit-outs to continue to grow, as occupiers continue to prioritise workplaces that support productivity and wellbeing across the region. Ongoing geopolitical developments, including continued uncertainty linked to the conflict in the Middle East, could place renewed pressure on energy markets, inflation and the availability of materials and labour.”