Forecasts for 2025 suggest that the downward trend in interest rates will continue, capital expenditures will increase and the rate of rent growth will slow to 2.1%. However, the fact that inflation has not been completely reined in shows that fit out costs are still under upward pressure.<\/p>\n
![\"\"](\"https:\/\/www.diem.com.tr\/wp-content\/uploads\/2025\/03\/2025-european-office-fit-out-cost-image-1024x696.png\")
<\/p>\n
Why Are Fit Out Costs Increasing?<\/h2>\n
The main reasons for the increase in fit out costs:<\/p>\n
- \n
- Labour and material costs will continue to rise (62% projected to increase by contractors).<\/li>\n
- Increase in investments made in accordance with ESG criteria.<\/li>\n
- Continued demand for quality buildings and quality workspaces.<\/li>\n
- Difficulties in finding specialised contractors and suppliers.<\/li>\n<\/ul>\n
For example; In 2025, office fit out costs at mid-level standards in some cities are as follows:<\/p>\n
- \n
- London:<\/strong> \u20ac2,671\/m\u00b2<\/li>\n
- Berlin:<\/strong> \u20ac2,333\/m\u00b2<\/li>\n
- Paris:<\/strong> \u20ac1,161\/m\u00b2<\/li>\n
- \u0130stanbul:<\/strong> \u20ac1,550\/m\u00b2<\/li>\n
- Madrid:<\/strong> \u20ac1,083\/m\u00b2<\/li>\n
- Dublin:<\/strong> \u20ac2,100\/m\u00b2<\/li>\n<\/ul>\n
![\"\"](\"https:\/\/www.diem.com.tr\/wp-content\/uploads\/2024\/09\/151A0530-1024x526.jpg\")
<\/h2>\nWhat are the Fit Out Classifications?<\/h2>\n
The report defines three main fit out standards:<\/p>\n
- \n
- Low Standard:<\/strong> Minimal meeting room, basic paint and floor coverings, low cost finishes.<\/li>\n
- Medium Standard:<\/strong> 10-20% meeting room, medium quality furniture and finishes, partial alterations to ventilation and ceiling systems.<\/li>\n
- High Standard:<\/strong> Over 25% meeting space, high quality finishes, double glazed partitions, custom designed areas.<\/li>\n<\/ol>\n
Recommendations for 2025<\/h2>\n
In the long term, fit out investments are of strategic importance not only in terms of cost but also in terms of employee experience, ESG compliance and office efficiency. Companies planning to renovate or relocate office space in 2025:<\/p>\n
- \n
- Keeping their budgets higher than market averages,<\/strong><\/li>\n
- Considering ESG investments,<\/strong><\/li>\n
- Careful planning of supply chain and project lead times,<\/strong><\/li>\n
- Accurate cost forecasting with professional project management support<\/strong> recommended.<\/li>\n<\/ul>\n
\n - Considering ESG investments,<\/strong><\/li>\n
- Medium Standard:<\/strong> 10-20% meeting room, medium quality furniture and finishes, partial alterations to ventilation and ceiling systems.<\/li>\n
- Berlin:<\/strong> \u20ac2,333\/m\u00b2<\/li>\n
- London:<\/strong> \u20ac2,671\/m\u00b2<\/li>\n