Construction & Real Estate

Riyadh office fit-out costs surpass Dubai, says report

The Middle East remains an attractive market for office fit-outs, with costs relatively lower compared to European capitals, according to a new report from Turner & Townsend, the global professional services firm.
 
The research finds that due to fierce competition for labour and materials the fit-out costs for a high-specification office are, on average, more than $350 per sqm higher in Riyadh ($3,864) compared to Dubai/Abu Dhabi ($3,499 per sqm). 
 
Major giga programmes are driving up competition and costs across the Middle East with cities like Riyadh benefiting from the influx of talent, said the industry expert.
 
The Global Occupier Fit-Out Report 2025 analyses fit-out costs across 50 global locations. It shows that the Middle East fit-out market is experiencing robust demand, particularly in the Kingdom of Saudi Arabia (KSA) and the UAE. 
 
Major cities such as Riyadh, Dubai, and Abu Dhabi are seeing substantial investment in high-specification commercial office space with a notable emphasis on technologically integrated and sustainability-led fit-outs, it stated.
 
As companies in the region continue to compete for the best talent to execute major programmes and projects, labour costs are increasing. 
 
This is particularly the case in the construction and technology sectors with significant demand for project management, engineering, and IT/AV integration skills, it added.
 
The shift towards hybrid working, flexible office space, and portfolio consolidation is reshaping fit-out decisions and ongoing real estate strategy. Companies in the Middle East are increasingly opting for smaller, adaptable office spaces to optimise costs and adapt to new working norms.
 
John Grant, the Director, Occupier Lead, Middle East, at Turner & Townsend, said: "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," he noted.
 
"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," stated Grant. 
 
"Conversely in KSA, there’s ample office stock, which has become a magnet for new occupiers including legal and technology companies," he added.-TradeArabia News Service