- In Madrid, average office fit-out costs stand at €1,083/m², while Barcelona shows slightly higher figures at €1,138/m².
- Demand remains highest for Grade A buildings, which account for 50% of all leasing activity.
- In 2024, 10.3 million square meters of office space have been leased across Europe, marking a 5% increase compared to the previous year.
Cushman & Wakefield has published its annual EMEA Office Fit Out Cost Guide 2025, which analyzes average office fit-out costs in 53 cities across Europe, the Middle East, and Africa (EMEA). Spain stands out as one of the most attractive markets for workplace fit-outs thanks to its combination of competitive costs and sustained demand for high-quality spaces.
In Madrid, average costs are €1,083/m², while Barcelona shows slightly higher figures at €1,138/m².
Compared to other European countries, costs in Spain are relatively more affordable. For example, in France, the average cost in Paris is €1,161/m², while in Germany the figures are significantly higher, reaching €2,333/m² in Berlin and €2,408/m² in Frankfurt. In the United Kingdom, costs are even higher, with London recording an average cost of €2,671/m², while in Manchester and Birmingham the average costs are €2,311/m² and €2,199/m², respectively.
The report indicates that across Europe, fit-out costs have increased by between 3% and 4% year-on-year, while reinstatement costs have risen between 2% and 7%.
A solid and growing real estate market
Despite the volatile economic conditions of 2024, Spain’s office market has shown remarkable resilience. The reduction in interest rates during the second half of 2024 boosted business confidence, leading to the leasing of 10.3 million square meters of office space across Europe—a 5% increase compared to the previous year.
Demand remains highest for Grade A buildings, which now account for 50% of all leasing activity, up from 40% in 2019. In both Madrid and Barcelona, the leasing of high-quality spaces has been a key driver of market stability and one of the most important decision-making factors. Over the past year, 75% of the office space leased in the Spanish capital has been in Grade A and B+ buildings, reflecting a clear preference for high-quality environments. In Barcelona, this trend also holds, with 70% of leasing activity concentrated in such properties.
Madrid has maintained strong leasing activity, supported by a steady supply of modern, well-located buildings. This trend has been reflected in the notable increase in office take-up in 2024, driven by the demand for high-quality and flexible spaces. The high demand for Grade A/B+ assets has led to a gradual tightening of availability, reaching historic lows in key submarkets within the M-30 ring road. Additionally, the growth of emerging sectors such as Learning and renewed momentum in the public sector have been key factors in consolidating this market behavior.
Barcelona has experienced a similar dynamic, with strong demand for space in key, well-connected locations.
The consolidation of New Business Areas has been key, attracting companies seeking more efficient spaces tailored to their needs. The technology sector has strengthened its presence, driving leasing activity in strategic areas, while growing interest in flexible solutions—such as plug & play spaces and subleasing—reflects the evolving needs of corporate occupiers.
In this context, sustainability and ESG (Environmental, Social, and Governance) criteria are also gaining importance in office fit-out decisions in Spain. In 2024, 46% of respondents indicated that their occupiers/tenants had increased spending on ESG criteria compared to 2023.
As for rents, strong demand for space contributed to a 5.4% increase in 2024. However, rental growth is expected to slow to 2.1% in 2025. This deceleration is partly attributed to the high volume of newly completed supply, which will put upward pressure on vacancy rates.
Óscar Fernández, Partner and Head of Business Development for Project & Development Services at Cushman & Wakefield Spain, stated: “Spain is positioning itself as one of the most attractive markets for office fit-outs, driven by its competitive costs and a growing supply of high-quality space. With stable economic prospects and a growing real estate market, Madrid and Barcelona will continue to be key and priority destinations for office investment in Europe.”
