Costs for Office Fit-Outs in Europe Increase by 7%, Reaching €1,830 per sq.m in Milan

Office fit-out expenses in Europe are on a continuous upward trend. In the past year, the EMEA (Europe, Middle East, and Africa) area has witnessed price hikes ranging from 5% to 7%. Although there is notable variability from market to market, there are no indications of this trend reversing.

This assessment is drawn from JLL's latest EMEA Office Fit-Out Cost Guide 2026 publication. The industry is confronted with various significant challenges: a scarcity of skilled labor, fluctuating energy costs, disruptions in the supply chain, and increasingly intricate building systems. Consequently, each new building project is more costly than its predecessor.

Dual-speed market

The situation in the European market is uneven. Some nations in Western and Northern Europe are reaping the benefits of stabilized inflation and heightened competition among contractors. Conversely, other regions - particularly the UK and Gulf countries - are experiencing cost escalations well above the average.

The primary drivers behind these price hikes are:

• Persistent scarcity of highly specialized professionals;
• Reliance on imported materials and machinery;
• Elevated energy expenses;
• Geopolitical tensions contributing to volatility in raw material markets.

The average office fit-out cost in the EMEA region has reached approximately 1,960 euros per sq. m.

• The UK and Ireland stand as the most expensive markets with an average rate of 2,660 euros/sq. m..
• Southern Europe is at 1,810 euros/sq. m..
• Central and Eastern Europe continue to offer more budget-friendly rates - around 1,700 euros/sq. m..

Milan: Competitive Among Titans, Yet Not Economical

The economic hub of Italy appears fairly competitive against the broader European backdrop:

• Basic finish: starting from 1,580 euros / sq. m..
• Average corporate standard: ranging from 1,830 to 1,900 euros / sq. m..
• High-tech premium offices: exceeding 2,180 euros / sq. m.

These figures affirm Milan's appeal in comparison to other major European centers, despite the consistent rise in prices there as well.

Engineering and technology consume the bulk of the budget

A notable structural change highlighted in the report is the shift in cost distribution. Engineering systems (mechanical, electrical), security, IT, and multimedia equipment are the fastest-growing cost elements. Presently, they constitute over 40% of the total budget for office fit-outs in the EMEA region.

The surge in these expenditure categories is attributed to several factors:

1. Complex supply chains: lead times for specialized equipment often surpass 40 weeks.
2. Surges in copper prices.
3. Increased demand for smart building technologies.

Forecasts from experts for the next year:

• 73% of EMEA markets anticipate further construction cost hikes.
• 58% of markets report a severe shortage of electricians and fitters, directly causing project delays and cost overruns.

In Italy, traditional general construction works are claiming a diminishing share of the budget, making room for "digital" and engineering aspects. As mentioned by Matteo Lavazza from JLL Italia, the modern office is no longer merely a space with furnishings: it must prioritize high energy efficiency, flexibility, data management systems, and optimal conditions for collaboration. This compels companies to integrate logistics and technical specifics during the initial design phases.

Environmental Consciousness and Sustainability: The New Norm

The shift towards "green" technologies and decarbonization is reshaping the real estate market dynamics:

• 65% of tenant firms prioritize the energy efficiency of buildings when selecting an office space.
• 42% of companies view reducing their carbon footprint (Net Zero) as a top priority.

In such circumstances, any renovation automatically transforms into an energy-saving initiative. High-efficiency appliances, low-carbon, eco-friendly materials, and intelligent control systems have become essential for modern offices, rather than merely a costly choice.