- London most expensive
- Hamburg, Munich, Frankfurt and Berlin comprise remainder of top 5
- Prague leads in central and eastern Europe
- Fit-out costs across Europe rose by an average of 4.0 percent in 2023
London has the highest office fit-out costs per square metre in the EMEA region, followed by four German cities. This is the result of a study by global property consultancy firm Cushman & Wakefield (C&W) setting out the average costs* for a range fit-out standards to help users plan their office relocation and refurbishment budgets. The analysis covering 43 cities shows that occupiers attach great importance to a working environment that promotes collaboration and productivity while taking sustainability goals into account.
The average office fit-out costs in the UK and German locations are significantly higher than those of other cities in the EMEA region. London ranks first with an average of EUR 2,629/sq m. The remaining top 5 cities are all in Germany: Hamburg (EUR 2,463/sq m), Munich (EUR 2,385/sq m), Frankfurt (EUR 2,361/sq m) and Berlin (EUR 2,287/sq m).
Prague (EUR 1,252/sq m) has the highest fit-out costs in Central and Eastern Europe, while Cairo (EUR 1,759/sq m) and Riyadh (EUR 1,650/sq m) are the most expensive cities in Africa and the Middle East respectively. Paris ranks well behind at EUR 1,190/sq m.
Fit-out costs in the EMEA region as a whole rose by an average of 4.0 percent last year, with expenditure on high-quality fit-outs averaging EUR 2,295/sq m. The high fit-out costs in the UK and Germany are driven by elevated expectations in terms of design, technology and quality. C&W expects that leasing decisions will continue to be based primarily on the highest possible quality of space.
Nic Wilkinson, Chair of Project & Development Services EMEA at C&W, commented: “The office sector is undergoing significant structural changes. The three main issues here are cost, decarbonisation and culture.”
“The optimal design of the workplace plays an important role in each of these areas. To create an environment in which employees can work productively and innovatively and benefit from interaction with colleagues. At the same time, a successful fit-out can help achieve corporate sustainability and inclusion goals. This is where we actively support companies with our integrated consulting services,” explains Tina Reuter, Head of Germany at C&W.
“As there are fewer new-build options available, tenants are increasingly likely to opt for lease renewals and occasionally consider upgrading their office fit-out. In this respect, companies are benefitting from the reduced demand in the construction sector. The pendulum is currently swinging in favour of the client side, enabling attractive lease terms and conditions,” added Martin Wellnitz, Head of Project & Development Services DACH, from C&W's German team.
According to Eurostat, construction prices in the eurozone as a whole rose by just 6.0 percent in 2023 falling from almost 12 percent a year earlier.
*Including furniture, audiovisual equipment, professional fees and a reserve for any additional costs associated with any potential internal fit-out project.
You can access the Office Fit Out Cost Guide 2024 here.
