A new report by global programme management company Turner & Townsend highlights the resilience of the Middle East office fit-out market, where strong demand for premium space continues to drive activity despite short-term geopolitical uncertainty.

In Dubai, Abu Dhabi, and Riyadh, demand for premium office space has strengthened, supported by economic diversification, population growth and international investment. Prior to the recent geopolitical tensions, average high-specification office fit-out costs stood at approximately AED13,946 per sq m across Dubai and Abu Dhabi, compared with around SAR14,932 per sq m in Saudi Arabia, reflecting strong demand and a higher reliance on specialist imported materials delivery into the Kingdom.

High-profile developments such as Dubai International Financial Centre, Abu Dhabi Global Market, and King Abdullah Financial District are setting new benchmarks for workplace quality and experience, reinforcing occupier expectations around performance, amenity and long-term value.

Saudi Arabia continues to anchor commercial activity. The re-sequencing of some giga programmes reflects market maturation rather than reduced momentum, with occupier demand becoming more targeted and quality-led. Greater emphasis is being placed on efficiency, long-term performance and workplace outcomes, while its Vision 2030 continues to drive investment as global occupiers increasingly localise operations.

Nadim Farah, Director and Corporate Occupier Lead for KSA, said:

“In the Kingdom of Saudi Arabia, what we’re seeing is a structural shift. Many global clients are embedding their operations within the Kingdom as part of Vision 2030. Even in somewhat uncertain conditions, occupiers continue to prioritise quality, with fit outs focused on flexibility and long-term resilience.” 

John Grant, Head of Occupier & Portfolios, Middle East, said:

"While current geopolitical events can't be ignored, the long-term outlook for the Middle East remains highly attractive. In the interim, we have seen more cautious cost reassessments, however, disruption to decision-making and supply chains has remained limited and is widely viewed as temporary. The region has a strong track record of absorbing shocks and rebounding, with the broader outlook for commercial real estate remaining positive." 

This sits alongside broader global trends, where a combination of a rise in demand for premium, highly amenitised Grade A office space and a shortfall in supply has led to double digit percentage increases in fit-out costs across major cities including Miami, Dublin and Bangalore. As flexible working has become entrenched, the changing role of the office is a key driver of cost escalation with businesses investing in higher quality and sustainable workspaces designed to bring people together, support collaboration and enhance the employee experience.

At the same time, the growth of AI is transforming the global fit-out landscape. Organisations are designing workplaces that integrate technology into the fabric of office environments, enabling advanced functionality such as digitally connected services, smart climate control and intelligent lighting systems. These enhancements are increasing both the complexity and cost of fit-outs, particularly in leading global markets.

Across many of these markets, a shortage of Grade A space is compounding cost pressures, as fewer new developments and higher construction costs coincide with rising occupier expectations. This is contributing to what the report identifies as the ‘stay versus go’ conundrum, as businesses weigh up whether to relocate, refurbish existing offices or remain in place despite changing needs.

Key global findings from the report include:

  • A combination of high demand, a limited pool of top tier contractors, and limited inventory means New York has regained the top spot as the most expensive fit-out market globally, with average fit out costs rising 4% to USD $5,886 per m2
  • London is the second most expensive market with high specification fit out costs sitting at $5,872 per m2, despite costs falling 1%, far higher than regional UK cities which have seen increases of up to 12%
  • Dublin has experienced one of the sharpest increases globally, with costs rising 12% to $3,878 per m²
  • In the US, the pursuit of amenity-rich and AI-driven offices has resulted in San Francisco and Los Angeles ranking fourth and sixth globally, while Miami costs rose 11% to $4,323 per m²
  • Tokyo has entered the global top ten, with premium fit-out costs reaching $4,814 per m² as demand outstrips supply
  • Hong Kong costs remain comparable with secondary markets, although premium client-facing spaces command significantly higher investment

The full report is available here.

Methodology

Turner & Townsend’s global office fit‑out cost guide brings together industry‑leading data and insight to show how workplace costs are shaped, structured and benchmarked across the world.

The 2026 guide analyses 58 cities worldwide, providing construction costs across high, medium and low specification levels. It follows the same standardised test fit as used in previous years of approximately 4,294 sq m across two floors to estimate the high, medium and low construction costs for a CAT A and CAT B fit out. 

For more information please contact:
FTI Consulting
turner&townsend@fticonsulting.com

About Turner & Townsend

Turner & Townsend is a global programme management company with over 23,000 people in 64 countries.

Working with clients across real estate, infrastructure, energy and natural resources, Turner & Townsend specialises in major programmes, project, cost and commercial management, project controls and performance, net zero and digital solutions, in markets around the world.

Turner & Townsend is majority-owned by CBRE Group, Inc., the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services, with its partners holding a significant non-controlling interest.

Please visit our website: www.turnerandtownsend.com

Bryn Woodward
Senior Director, Strategic Communications

FTI Consulting
+44 20 3077 0505 T | +44 7929 383297 M
Bryn.Woodward@fticonsulting.com

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