Middle East office fit-out costs rise as competition for labour intensifies: Report

The research analysed fit-out costs across 50 locations worldwide and found that high-specification office fit-outs in Riyadh cost $3,864 per square metre, compared to $3,499 per square metre in Dubai and Abu Dhabi – a difference of more than $350 per square metre.

“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. This, mirrored by labour shortages, is pushing up wages and preliminary costs for skilled fit-out contractors. In Dubai, the supply of commercial office space is tight. Clients are finding it tough to meet ‘return to office’ demands and are choosing to refurbish their existing spaces, instead of relocating, to create room for growth. Conversely in KSA, there’s ample office stock, which has become a magnet for new occupiers including legal and technology companies,” John Grant, Director, Occupier Lead, Middle East, at Turner & Townsend said.

Middle East fit-out costs rise

Giga programmes across the Middle East are driving up competition and costs, with cities like Riyadh benefiting from an influx of talent relocating to the Kingdom of Saudi Arabia.

The Middle East fit-out market is experiencing demand, particularly in Saudi Arabia and the UAE.

Cities including Riyadh, Dubai, and Abu Dhabi are seeing investment in commercial office space with emphasis on technology integration and sustainability-led fit-outs.

Competition for talent to execute programmes and projects is pushing up labour costs, particularly in construction and technology sectors. There is demand for project management, engineering, and IT/AV integration skills.

The shift towards hybrid working, office space flexibility, and portfolio consolidation is reshaping fit-out decisions and real estate strategy.

Companies in the Middle East are opting for smaller, adaptable office spaces to optimise costs and adapt to working norms.