Fit-out costs climb on demand, green push

The Middle East's office fit-out market is heating up, with Saudi Arabia and the UAE leading the surge in demand for high-spec, sustainable, and tech-integrated workspaces. However, escalating costs driven by labour shortages, supply chain disruptions and competition for skilled talent are reshaping strategies, according to new insights from Turner & Townsend and JLL.

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THE Middle East continues to be an attractive market for office fit-outs, yet the sector is experiencing escalating costs driven by fierce competition for talent and materials, according to recent reports from global professional services firm Turner & Townsend and leading real estate expert JLL.

Despite being relatively more affordable than European capitals, the region's fit-out expenses are on the rise. High-specification office fit-out costs in Riyadh average $3,864 per sq m, notably higher than Dubai and Abu Dhabi at $3,499 per sq m, as highlighted by Turner & Townsend's Global Occupier Fit-Out Report 2025. This disparity is largely attributed to major giga-programmes in Saudi Arabia, which are intensifying competition for resources and attracting significant talent influx. The Global Occupier Fit-Out Report 2025 analyses fit-out costs across 50 global locations.

Both reports underscore robust demand across the Middle East, particularly in the Kingdom of Saudi Arabia and the UAE, with substantial investment in high-specification commercial office spaces. A strong emphasis is being placed on technologically integrated and sustainability-led fit-outs.

The increasing demand for skilled labour, especially in construction, project management, engineering, and IT/AV integration, is pushing up wages and preliminary costs for contractors. John Grant, Director, Occupier Lead, Middle East, at Turner & Townsend, notes: “We're seeing a shift in the Middle East. Talent, across all levels, continues to relocate to KSA and the knock-on effect is that the UAE is now feeling the pinch.”

He adds that this, coupled with labour shortages, is driving up costs for skilled fit-out contractors.