A new report published by Turner & Townsend reveals that a combination of a rise in demand for premium, highly amenitised Grade A office space and a shortfall in supply in many markets is driving increases in fit-out costs across global cities.
The Global Office Fit-Out Cost Guide 2026, which analyses 58 cities worldwide, highlights how workplace expectations are evolving, with organisations investing in higher quality, more flexible and technology-enabled environments. While the report covers Nairobi, Lagos and Johannesburg, broader real estate evidence shows that similar trends, including a “flight to quality” and an increased focus on ESG and modern office design – are increasingly evident across major African markets.
A key driver of rising fit-out costs is the changing role of the office and increased demand from occupiers for higher quality, more amenitised and sustainable workspaces. With the normalisation of flexible working, businesses are placing greater emphasis on creating environments that bring people together. Offices are no longer just places to work, but spaces designed to support collaboration, social interaction and innovation. This is resulting in higher specification and customisable office fit-outs.
In a digitally enabled world, organisations are designing office spaces that integrate technology into the fabric of the workplace increasing the complexity of fit-out delivery. Across African markets, offices are being tailored to accommodate virtual working environments, including enhanced IT/AV technology and soundproofing.
Global economic and political trends are also influencing fit-out costs across Africa. Reliance on imported materials and specialist equipment means many markets remain exposed to currency fluctuations and additional cost pressures.
In some markets, these dynamics are particularly pronounced. In countries where the US dollar is the primary construction currency, import duties significantly increase overall project costs. Even with local sourcing of materials, specialist equipment such as mechanical, engineering and plumbing systems can face substantial cost increases. This is one of the factors contributing to variation across the continent, with Lagos ranking as the most expensive African fit-out market, with high specification costs reaching ₦3,774,935 per sqm (approximately $2,718 per sqm).
Land and stock availability is generally not a constraint in African markets, distinguishing the region from many global cities where shortages of premium office space are influencing occupier decision-making. However, in some high-demand locations such as Johannesburg where, on average,(high specification office fit-out costs are $2026 per sqm), there are pockets of tightening supply, driven by large occupiers taking up new space, often for call centres and local offices of multinational organisations.
Across the region, markets are often characterised by more subdued occupier demand and an oversupply of space overall. Demand is concentrated in well-located, higher-grade buildings, with location and security playing a defining role in occupier decision-making.
Wendy Cerutti, Head of Real Estate in Africa, at Turner & Townsend, said:“We are seeing the same global shifts in occupier expectations reflected across Africa’s office markets. Organisations are placing greater emphasis on high-quality, amenity-rich spaces that support collaboration, wellbeing and performance. At the same time, the need to balance cost with long-term value is becoming increasingly important, particularly as projects become more complex and expectations continue to rise.
“For occupiers across Africa, early engagement, clear strategic planning and a strong focus on value will be critical to navigating these decisions effectively.”
