Spain remains one of the most competitive markets in Europe for office fit-out and workplace adaptation, despite a moderate increase in costs and growing pressure on the supply chain, according to Cushman & Wakefield’s EMEA Office Fit Out Cost Guide 2026. The report analyses the evolution of office fit-out costs across 53 cities in Europe, the Middle East and Africa (EMEA).
In 2026, average fit-out costs stand at €1,124/sq m in Madrid and €1,186/sq m in Barcelona, representing year-on-year increases of 3.8% and 4.2%, respectively, compared with 2025.
Despite these increases, Spain continues to rank below other major European markets in terms of office fit-out costs. Across the region, the most expensive cities for office fit-outs are concentrated in Northern and Central Europe. London tops the ranking at €2,668/sq m, followed by Hamburg (€2,512/sq m) and Copenhagen (€2,500/sq m). Munich (€2,432/sq m) and Frankfurt (€2,408/sq m) complete the top five, reinforcing Germany’s position as one of the region’s most expensive markets.
The report highlights that office fit-out costs across EMEA increased by an average of 3.8% in 2025, a trend that continues into 2026, driven primarily by rising labour costs.
In this context, Spain stands out as one of the markets facing the greatest cost pressures. Ninety-four percent of companies expect supplier prices to increase, the highest percentage across EMEA, reflecting heightened pressure on material costs, labour availability, and supply chains.
Strong Demand and Preference for High-Quality Space
The office market continues to perform positively, reinforcing trends already observed in 2025. Across Europe, office take-up reached 10.5 million sq m in 2025, up from 10.3 million sq m in 2024, with a clear preference for high-quality buildings.
Demand for Grade A office space continues to gain momentum, with leasing activity increasing by 8% year-on-year, while secondary assets continue to lose market share. Against this backdrop, Spain continues to demonstrate strong performance, with a growing market polarisation towards higher-quality assets.
In Madrid, Grade A and B+ buildings accounted for 65% of total take-up in 2025, representing 325,000 sq m. This figure rose to 70% in the first quarter of 2026, equivalent to 61,000 sq m.
In Barcelona, the trend is even more pronounced. In 2025, Grade A and B+ buildings represented 82% of total take-up, amounting to 260,000 sq m. During the first quarter of 2026, these assets accounted for 70% of take-up, with 68,000 sq m leased.
“In an environment where costs continue to rise, it is essential for companies to plan their investments further in advance and act with agility, particularly in strategic locations, in order to secure both pricing and resource availability. In this context, Madrid and Barcelona will continue to strengthen their position as priority destinations for office investment in Europe, thanks to their balanced combination of costs, product quality and market dynamism,” said Carlos Pueyo, International Partner and Head of Project & Development Services Iberia at Cushman & Wakefield.
ESG and Efficiency Drive Decision-Making
The report points to a significant reduction in new office supply across Europe, with construction volumes currently 30% below recent peaks. This may place additional pressure on the availability of office space and support rental growth over the medium term.
This trend is already evident in the Spanish market, where rents continue to rise in the main office hubs. By the end of 2025, prime rents had increased by 2% in Madrid and 5% in Barcelona compared with 2024. This upward trend accelerated at the beginning of 2026, with year-on-year rental growth reaching 4% in Madrid and 5% in Barcelona.
At the same time, the report highlights that ESG considerations are no longer an optional element, but a central component of corporate real estate strategies. ESG is no longer solely about compliance or reputation; it has become a key factor influencing both investment decisions and workplace design.
As a result, companies are increasingly incorporating ESG criteria throughout the entire project lifecycle, from building selection through to workspace operations.
