Differences in Pace Across Europe: Milan's Profitability in Comparison to Expensive London and Dublin

The expenses for completing and outfitting offices in Europe rose by around 5–7% in the past year, setting the average cost in the EMEA region at 1,960 €/sq. m. As per the JLL EMEA Office Fit-Out Cost Guide 2026 report, the main factors driving the cost hikes included a lack of specialized workforce, inflation, increasing energy prices, and the complexity of contemporary engineering systems.

Cost Distribution of Office Fit-Outs

• United Kingdom and Ireland (€2,660/sq. m): This region stands out as the most expensive market, heavily reliant on imported materials and facing high expenses.
• Milan (€1,830 – €1,900/sq. m): It represents an average cost level for corporate spaces. Milan continues to compete effectively among major European centers. The cost varies from 1,580 €/sq. m for basic completion to 2,180 €/sq. m and above for advanced smart offices.
• Southern Europe (€1,810/sq.m): Experiencing moderate cost growth, slightly below the European average.
• Central and Eastern Europe (€1,700/sq.m): Recognized as the most budget-friendly region for office setups.

Cost Breakdown and Main Risks

• Engineering and technology (>40% of the budget): Mechanical, electrical, IT, and AV systems have emerged as the priciest part of projects due to copper costs and increased demand for smart building solutions.
• Logistics lead times: The waiting period for specialized equipment often exceeds 40 weeks.
• Labor Shortage: 58% of markets are facing a severe lack of electricians and technicians.
• Projections: 73% of specialists anticipate further price hikes in construction works over the upcoming 12 months.

Sustainability as a New Norm

Energy efficiency and decarbonization are no longer luxury choices but essential requirements today:

• 65% of tenant firms prioritize energy efficiency when selecting properties.
• 42% of companies aim for carbon neutrality (Net Zero).
• Utilizing eco-friendly materials with low carbon footprints and implementing smart energy management systems have become mandatory standards in designing modern offices.