Office fit-out costs across EMEA rise unevenly

Office fit-out delivery across the EMEA is being shaped by cost pressures, labour constraints and technical complexity.

According to JLL’s latest EMEA Office Fit-Out Cost Guide 2026, office-related construction costs across Europe, the Middle East and Africa (EMEA) continued to rise over the past 12 months, despite broader signs of consumer inflation stabilisation.

The report found fit-out costs across EMEA increased between five and seven per cent year-on-year, but the drivers of that inflation vary significantly by market.

While stabilising inflation and competitive tendering have helped moderate escalation in parts of Western and Northern Europe, other markets — particularly the UK and Gulf states — continue to experience above-average increases due to sustained labour shortages, elevated energy costs and higher import dependency. These disparities are further amplified by geopolitical risk, including the ongoing Iran conflict, which is increasing volatility in energy and materials markets and is expected to place additional upward pressure on costs into 2026.

The average office fit-out cost in EMEA now stands at approximately €1.960 per square metre, but this figure masks substantial regional variation. The UK and Ireland remain the most expensive sub-region at around €2,660 per square metre, while Southern Europe averages €1,810 and Central and Eastern Europe sits significantly lower at approximately €1,700 per square metre.

According to JLL, 73 per cent of EMEA markets expect construction prices to increase further over the next 12 months as labour shortages, geopolitical instability and supply chain disruption continue to affect procurement and project delivery. Mechanical & Electrical (M&E) services and Security, IT & AV works are now the fastest-growing cost categories across EMEA fit-out projects, collectively accounting for more than 40 per cent of total fit-out spend on average. These categories are being disproportionately impacted by complex supply chains, extended lead times for specialist equipment, copper price volatility and increasing demand for smart building technologies, all of which are placing growing pressure on project budgets and delivery timelines.

Despite these pressures, demand for office investment and refurbishment activity remains resilient across EMEA, particularly as occupiers continue to prioritise higher-performing workplaces, energy efficiency and modernisation strategies. However, JLL says organisations are increasingly having to plan projects market-by-market as local labour availability, procurement conditions and sustainability requirements become more influential in shaping overall project costs.

Ruth Hynes, Director of Research & Strategy, Work Dynamics EMEA, said: “Construction cost inflation across EMEA is no longer moving in a uniform direction. Some markets have benefited from stabilising inflation and more competitive tendering conditions, while others remain heavily exposed to labour shortages, energy market volatility and supply chain disruption. As occupiers continue investing in office upgrades and refurbishment projects, understanding local market conditions is becoming increasingly important for effective cost planning and project delivery.

Elaine O’Connor, Interim Head of PDS & Tetris and Head of Operations PDS & Tetris, EMEA, added: “We are seeing clients bring forward procurement and technical decision-making on fit-out projects, particularly for M&E systems and long-lead equipment, in response to extended lead times and ongoing supply chain pressures. Earlier alignment between design, procurement and delivery teams is becoming increasingly important to manage both cost and programme risk.”