Madrid and Barcelona remain competitive in the European office market despite a cost increase of around 4%. In 2026, average fit-out costs stand at €1,124 per sqm in the capital and €1,186 per sqm in Barcelona, representing a year-on-year increase of 3.8% and 4.2% respectively compared to 2025, according to Cushman & Wakefield’s EMEA Office Fit Out Cost Guide 2026.
This moderate rise in costs in the Spanish market comes against a backdrop of increased pressure on the supply chain, according to data collected from 53 cities across the EMEA region. Despite the rise in costs, Spain ranks below the major European markets led by the north and centre of the continent. London tops the cost rankings at €2,668 per sqm, followed by Hamburg at €2,512 per sqm, Copenhagen at €2,500 per sqm, Munich at €2,432 per sqm and Frankfurt at €2,408 per sqm. The upward trend in the region, which already recorded an average increase of 3.8% in 2025, is driven primarily by rising labour costs.
In terms of price forecasts, 94% of companies in Spain expect increases in supplier services, representing the highest percentage in the EMEA region and reflecting significant pressure on materials and labour. At the same time, demand is largely concentrated on high-quality assets. In Madrid, Grade A and B+ buildings accounted for 65% of take-up in 2025, rising to 70% in the first quarter of 2026. In Barcelona, these properties accounted for 82% of take-up in 2025 and 70% at the start of 2026.
The supply of new space in Europe is currently 30% below recent peaks, which is driving rent growth in the medium term. By the end of 2025, prime rents had risen by 2% in Madrid and 5% in Barcelona, a trend that has intensified at the start of 2026 with year-on-year increases of 4% and 5% respectively. This market scenario is complemented by the structural integration of ESG criteria into investment strategies and space design.
