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The study highlighted the complex cost pressures facing the construction industry across Europe, the Middle East, and Africa in 2025, amid a continued rise in office fit-out costs over the past 12 months. This ongoing cost increase implies a growing trend among organizations in the region, with 44% planning to increase in-office workdays over the next five years. 
Dubai was also ranked among the top 20 cities globally on the Cost Index, underscoring ongoing competition for premium Grade A office space. In Saudi Arabia, initiatives such as the “Regional Headquarters Program” are driving demand for such high-end office environments.
“Optimism around workplace investment is expected to persist throughout 2025, as growth-oriented companies continue investing in office environments to support hybrid work strategies,” Maroun Deeb, Head of Project and Development Services for JLL in Saudi Arabia and Bahrain, stated.
Investments aimed at enhancing the employee experience are increasingly focusing on workplace design, innovative technology solutions, and renovation opportunities, in line with growing employee interest in healthy and energy-efficient workspaces, he added.
Several factors are influencing current market dynamics; supply chain disruptions in 2024 disproportionately affected the MENA region, tightening project timelines and driving up costs.
Construction work, including space partitions, flooring, finishes, and carpentry, typically accounts for the largest share of fit-out costs, ranging from 26% in Cairo, to 36% in the UAE, and up to 40% in Saudi Arabia. These elements are particularly sensitive to fluctuations in raw material prices and supply chain risks.
Further, mechanical and electrical services now represent the largest component of office fit-out costs, as stricter environmental and sustainability standards require more complex systems. Cairo ranks among the top global cities in this category, with MEP services accounting for 39% of total fit-out costs per square meter, while Dubai (30%) and Riyadh (29%) are in line with the global average of 29%.
Logo of JLL
The study highlighted the complex cost pressures facing the construction industry across Europe, the Middle East, and Africa in 2025, amid a continued rise in office fit-out costs over the past 12 months. This ongoing cost increase implies a growing trend among organizations in the region, with 44% planning to increase in-office workdays over the next five years.
Dubai was also ranked among the top 20 cities globally on the Cost Index, underscoring ongoing competition for premium Grade A office space. In Saudi Arabia, initiatives such as the “Regional Headquarters Program” are driving demand for such high-end office environments.
“Optimism around workplace investment is expected to persist throughout 2025, as growth-oriented companies continue investing in office environments to support hybrid work strategies,” Maroun Deeb, Head of Project and Development Services for JLL in Saudi Arabia and Bahrain, stated.
Investments aimed at enhancing the employee experience are increasingly focusing on workplace design, innovative technology solutions, and renovation opportunities, in line with growing employee interest in healthy and energy-efficient workspaces, he added.
Several factors are influencing current market dynamics; supply chain disruptions in 2024 disproportionately affected the MENA region, tightening project timelines and driving up costs.
Construction work, including space partitions, flooring, finishes, and carpentry, typically accounts for the largest share of fit-out costs, ranging from 26% in Cairo, to 36% in the UAE, and up to 40% in Saudi Arabia. These elements are particularly sensitive to fluctuations in raw material prices and supply chain risks.
Further, mechanical and electrical services now represent the largest component of office fit-out costs, as stricter environmental and sustainability standards require more complex systems. Cairo ranks among the top global cities in this category, with MEP services accounting for 39% of total fit-out costs per square meter, while Dubai (30%) and Riyadh (29%) are in line with the global average of 29%.
