CUSHMAN & WAKEFIELD OFFICE HAMBURG - GERMANY
Introduction THE EUROPEAN ECONOMY CONTINUES TO ENDURE AN ARRAY OF CHALLENGES. Ongoing conflicts in Europe remain a source of volatility, while the imposition of tariffs on goods exported to the U.S., set at almost unprecedented levels, was a new source of uncertainty that eroded market confidence. Notwithstanding, the regional economy performed comparatively strongly through the year despite these headwinds. Inflation is under control in the Euro area and continues to trend down elsewhere. Wage growth, however, remains elevated in key European countries, which is driving increased labour costs. The outlook has become more clouded with the recent changes to tariffs and escalation of conflict in the Middle East. Prior to these events, growth was forecast to slow in 2026, and then accelerate into 2027 supported by further, selective interest rate cuts and a robust labour market.
SHOULD THE REGIONAL ECONOMY FOLLOW THIS BASELINE SCENARIO, IT SUGGESTS NET ABSORPTION OF A LITTLE OVER 2 MILLION SQUARE METRES (MSM) IN 2026 AND 2.5 MSM IN 2027. The outlook for construction costs remains skewed toward mild increases over the near term. Our guide recorded an average of a 3.8% increase in “all-in” fit out costs in 2025. Although wage growth is forecast to ease further, labour is still expected to be the key component of overall cost increases. More positively, project timelines have stabilised and contractors are optimistic on the outlook. Companies should therefore be encouraged to scrutinise their capital expenditure budget requirements and then act decisively, especially on high priority sites, to secure current pricing and labour availability.
In this guide, we have maintained our coverage to include 53 key cities across Europe, Middle East and Africa; and continue to provide insights into construction through our European Contractor Sentiment Survey. Average costs across a range of fit out standards are set out to help occupiers through the early stages of defining their office relocation budgets. Our guide also provides an ‘all-in’ section to include furniture, audio visual, professional fees and contingency on the total costs associated with a potential internal fit out project.
The pricing benchmarks included in this guide reflect market conditions as of December 2025 and represent average fit out costs across the covered markets. While every effort has been made to ensure accuracy, ongoing geopolitical developments, including conflict in the Middle East, may influence supply chains, material availability, labour markets and energy costs, which could impact future pricing. As such, these figures should be considered indicative benchmarks rather than fixed project costs, and we recommend seeking project-specific advice for current market pricing.
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Cushman & Wakefield
EMEA Office Fit Out Cost Guide 2026
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