78% respondents are
The upward pressure appears to be coming from several directions. A greater proportion of respondents (66%) expected vendors to increase their prices. The situation then becomes clearer when examining views on future costs of raw materials and labour. In both instances, 78% of respondents are expecting cost increases, with the majority of the remainder erring to a neutral stance. Beneath this, 10% of respondents expect significant increases in material costs and 6% expect significant increases in labour costs. Tariffs, though, are not the cause of the latter as 65% report no impact and only
These are the same markets that have posted stronger recent economic growth in recent periods. By contrast, Germany—and to a lesser extent France and Italy— have experienced more subdued growth, and respondents there report lower price pressures; in Germany, only 14% expect vendor price increases. There is a similar divergence in expectations for raw material prices— 100% of respondents in Spain and Slovakia expect prices to increase— although the gap between markets is narrower than for vendor pricing. The effects of widespread wage growth (3.6% YOY in the Euro area, 4.0% in the EU and 4.6% in the UK) are more evident. In eight out of 13 markets, at least 80% of respondents expect labour costs to increase. France is the only market where a majority (60%) expect labour costs to hold steady. Respondents were asked to provide views on project backlogs and timelines. For the most part, these appear under control. At the regional level, 51% of respondents estimate backlogs at five months or less with a further 21% estimating six months.
At one end of the spectrum, project timelines appear most under control in the UK, with 92% reporting a backlog of five months or less. In contrast, over 40% of respondents in France, Spain and Sweden cite backlogs in excess of ten months, compared to a regional average of 17%. However, this does not seem to be flowing into any further increases in lead times, as three-quarters of respondents expect these to hold steady over the near term. Respondents in Germany are less convinced with 43% expecting an increase, which could be associated with a general ramping up of economic growth after a sustained period of sluggish activity. Against this backdrop, contractors are mostly positive on the outlook for the sector with 60% expecting conditions to improve slightly (45%) or significantly (15%). Germany, Portugal and Sweden are standouts here at over 80%. Together these suggest that companies should scrutinise their capital expenditure budget requirements to ensure they meet market rates and then act decisively, especially on high priority sites, to secure current pricing and labour availability.
expecting cost increases, with the majority of the remainder erring to a neutral stance 8/13 markets, at least 80% of respondents expect labour costs to increase 51% of respondents estimate backlogs at five months or less with a further 21% estimating six months
a third report a slight increase. Part of the reason for these cost
pressures can be found in the economic condition of each market as there are, at times, quite diverging views at the sub-regional level. In broad terms, cost pressures are being felt most acutely in Spain and CEE markets including Poland, Slovakia and Czechia; over 75% of respondents in each market expect vendor price increases compared to the regional average of 68%, with Spain leading at 94%.
TRINITY LIFE SCIENCES - UK
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Cushman & Wakefield
EMEA Office Fit Out Cost Guide 2026
GC SURVEY RAN THROUGH DECEMBER 2025 AND JANUARY 2026
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