- Contractor confidence survey reveals that 60% of respondents expect an improvement in market conditions in 2026
- Office adaptation and fit-out costs stabilise across most major markets, following sharp increases in recent years
Cushman & Wakefield’s (C&W) EMEA Office Fit Out Cost Guide 2026 points to a resilient market, despite ongoing challenges such as tariffs and continuing conflicts across the region. The report analyses 53 cities across the EMEA region (Europe, Middle East and Africa) and shows that, in 2025, average office fit‑out (adaptation and finishing) costs reached €1,509/m², representing an increase of 3.8% year‑on‑year. However, after several years of significant rises, costs have begun to stabilise in many key markets, including Germany, Belgium and the Netherlands, and even registered a slight decrease in the United Kingdom.
Cushman & Wakefield’s annual survey of European contractors, which this year included 140 companies, reveals a clearly more positive sentiment: 60% of respondents believe that market conditions will improve in 2026, with 45% expecting a slight improvement and 15% anticipating a significant one. This figure rises to over 80% in Germany, Portugal and Sweden.
This optimism is supported by a recovery in office demand. Net absorption is expected to reach 2 million square metres in 2026 and 2.5 million square metres in 2027, reflecting increased occupier interest in returning to the office and investing in workplace quality. Nevertheless, contractors remain cautious about short‑term pricing trends: 39% believe prices will remain stable, while 57% anticipate a slight increase. At the same time, 78% expect their own costs to rise, particularly due to materials and labour, placing pressure on margins and forcing a choice between higher prices or reduced profitability.
Nic Wilkinson, Vice President – Project & Development Services, EMEA, comments: “In 2025, fit‑out costs and project delivery times normalised across most European markets. Work volumes became more balanced and early concerns about the impact of tariffs on supply chains failed to materialise, with two thirds of contractors reporting no effect.”
Wilkinson adds “Office development activity remains relatively subdued, reflecting the high construction and material costs seen in recent years. At the same time, strong competition for high‑quality space makes early planning and rigorous execution even more critical. Looking ahead, we anticipate continued growth in demand for high‑quality office fit‑outs, increasingly focused on user experience, as companies place greater emphasis on employee wellbeing and productivity.”
Evolution of Fit-Out Costs (2025 → 2026)
The 2026 Guide highlights clear differences in office fit‑out costs between European cities (€/m²):
• Rising costs: Ireland and Slovakia recorded notable increases year‑on‑year
– Dublin: €2,300 vs. €2,100
– Bratislava: €1,300 vs. €1,140
• Falling costs: The United Kingdom was the only European market to see a (very slight) decrease in average costs (less than 0.2%). London remains the most expensive city in Europe at €2,668/m², and the UK accounts for four of the ten most expensive cities.
• Stable costs: Germany maintained largely unchanged costs, with Hamburg (€2,512/m²) among Europe’s most expensive cities.
• Other markets that also remained stable:
– Norway (Oslo: €1,770)
– Belgium (Brussels: €1,661)
– Denmark (Copenhagen: €1,661)
– Finland (Helsinki: €1,558)
– Netherlands (Amsterdam: €1,250)
• Best value for money: Croatia stands out as Europe’s most competitive market, with Zagreb (€750) recording the lowest costs.
These variations reflect local construction dynamics as well as broader economic factors that continue to influence material, labour and project delivery costs across the region.
Outlook
Nic Wilkinson concludes: “Ongoing conflicts, rising geopolitical risks and US import tariffs posed significant challenges in 2025, leading to isolated supply chain disruptions and uneven global trade. Looking ahead, geopolitical instability — including uncertainty linked to the Middle East conflict — could once again place pressure on energy markets, inflation, and the availability of materials and labour. Despite the resilience demonstrated so far, these factors remain a material risk to supply chain stability and price evolution.”
Vítor Cajus, Partner and Head of Project & Development Services Portugal, adds: “In 2026, office fit‑out will become even more important in both Lisbon and Porto, although for slightly different reasons. In Lisbon, strong demand for high‑quality office space, clearly exceeding available supply, continues to drive investment in adaptation and value‑add works. In Porto, where offices delivered with fit‑out already in place are still not the norm, there is significant growth potential, making this segment increasingly strategic in aligning supply with occupier expectations. Perhaps for these reasons, Portugal stands out as one of the few countries in Europe — alongside Germany and Sweden — where sentiment is particularly positive, with over 80% of contractors anticipating improved market conditions in 2026.”
Office Fit-Out Costs in Europe Stabilise and Show Market Resilience
16/04/2026
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.
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