European office costs continue to rise, but companies are not compromising on their demands for high-quality work environments. On the contrary, they are investing in premium offices that are cleverly designed and technologically advanced. The circular economy, digitalisation and efficient use of space are helping to curb cost growth significantly.
According to Colliers’ Occupier Fit-Out Guide 2026 study, companies across Europe are changing the way they approach offices. The result is more compact, higher-quality and more flexible spaces that are in line with hybrid work models and growing, ESG-related regulatory requirements.
Fewer square meters, more value
“On average, companies today use 40 percent less office space than in the pre-COVID period, saving up to 25 percent on total office operating costs thanks to efficient layout solutions, shared workspaces and technology,” says Jana Vlková, Director of Workplace Advisory and Office Agency at Colliers in the Czech Republic. According to her, fit-out thus becomes not only a construction project, but also a strategic tool for optimising costs and supporting employee satisfaction.
Companies must assess office costs in a broader context than just price per square meter. Today, the key indicator is the total monthly cost per workstation and per employee, which combines rent, service costs, office size, space utilisation efficiency and investment in fit-out.
According to data from Colliers, in 2025, the monthly cost of a single workstation in modern offices ranged from approximately €450 to €650, depending on the standard applied. Translated into per employee terms, this means €240 to €320 per month. Most often, companies use 14 sqm per workstation, 7 sqm per employee, and desk sharing at a ratio of 0.65 desks per employee, which makes more efficient use of space in a hybrid work model.
The fit-out itself also plays a significant role in the overall cost. In Prague, its price currently ranges from €950 per sqm for basic solutions to €1,200 per sqm for medium standard and €1,850 per sqm for premium offices.
Compared to other European capitals, Prague remains more affordable. The Czech capital wins not only in comparison with Western Europe (where Berlin, for example, is 37 percent more expensive for lower specifications and London, which can be up to 45 percent more expensive), but also with capitals in Central and Eastern Europe.
Hybrid work and technology as a brake on cost growth
According to Colliers, technology and circular economy principles significantly mitigate rising prices for construction work, materials and energy – such as material reuse, modular solutions, smart energy management and workplace digitisation. The Energy Performance of Buildings Directive, which requires nearly zero energy consumption in new buildings and strict standards for renovations, also has an impact in this regard. ESG compliance is no longer an option, but an obligation. In addition, the Czech Building Act will introduce unified environmental opinions from 2024, firmly anchoring ESG in permitting processes.
“Modern offices today aim for BREEAM, LEED or WELL certification. When building or fitting out, companies must use materials and construction elements with an emphasis on sustainability, low environmental impact and a healthy indoor environment. Energy-efficient lighting, heating and cooling solutions, furniture made from recycled or certified materials, and even green facades and roofs are common,” says Jana Vlková. This approach supports the so-called “flight to quality,” where companies choose higher-quality offices despite rising costs because they pay off in the long run.
Higher investment but lower overall costs
“Although the use of environmentally friendly materials can increase the initial costs of fit-out by up to 10 percent for premium solutions, companies save significantly over the longer term thanks to smaller floor space and more efficient operations,” explains Jana Vlková.
For example, the cost of a new 3,200 sqm office for 400 employees at a rent of €24 per sqm comes to around €1.1 million per year. Despite the increase in rents, services and fit-out prices, this is significantly cheaper overall than operating the original 5,500 sqm, which the company leased for 10 years at a lower rent of €14 per sqm, with a total annual cost of almost €1.5 million.
Fit-outs as an investment in the future
In 2026, companies should approach fit-outs as a long-term investment rather than a one-off expense. Early planning, working with realistic price benchmarks and involving suppliers in the project’s early stages help reduce risks, keep budgets under control and assure better response to price fluctuations. “Successful companies will be able to balance rising costs, high employee demands and regulatory pressure. A high-quality fit-out is the key to achieving this balance,” concludes Jana Vlková.
