Lagos has been ranked as Africa’s most expensive city for premium office fit-outs, underscoring how growing demand for Grade A office spaces and persistent cost pressures are reshaping the continent’s commercial real estate sector.
The report is drawn from Turner & Townsend’s Global Office Fit-Out Cost Guide 2026, which analyses the cost of delivering high-specification office spaces across 58 cities worldwide.
The study indicates that African markets are increasingly aligning with global patterns seen in major financial hubs, as more companies prioritize modern, technology-driven workplaces.
Strong demand, a limited number of specialist contractors, and restricted supply have driven New York back to the highest position globally for office fit-out costs, with premium projects averaging a 4% rise to $5,886 per square metre.
London still ranks as the second most expensive office fit-out market globally at $5,872 per square metre, while Tokyo sits within the top ten, where costs have risen to $4,814 per square metre amid constrained supply and robust demand for Grade A offices.
At about $2,718 per square metre, Lagos records the highest cost for high-spec office fit-outs among African cities in the survey. The figures point to the actual dollar spending required by companies to develop premium Grade A office spaces.
At about $2,081 per square metre, Nairobi ranks as the highest in Africa on the report’s global fit-out cost index, although the position is based on a relative economic comparison rather than actual spending levels.
Lagos leads as the most expensive market in real dollar terms, followed by Johannesburg at $2,026 per square metre.
The gap underscores the report’s two-way methodology, where the ranking index accounts for wider economic comparability between markets, while nominal figures capture the actual dollar costs incurred.
Lagos’ high costs are attributed to heavy dependence on imported materials, fluctuations in currency value, logistical challenges, and the expensive installation of specialist mechanical, electrical, and plumbing systems needed for modern Grade A office developments.
The report also highlights a growing “flight to quality” across Africa, as companies increasingly invest in premium, technology-enabled workplaces aimed at boosting collaboration, productivity, and employee wellbeing.
Even with relatively weak occupier demand in some parts of the region, developers are prioritizing high-quality assets in key business centres, where multinational companies are increasingly consolidating their operations.
Head of Real Estate in Africa at Turner & Townsend, Wendy Cerutti, noted that global changes in workplace expectations are now increasingly reflected across African markets, as organizations focus more on premium, amenity-rich work environments.
She stated that as office developments become more sophisticated and workplace expectations increase, occupiers will need to strike a balance between rising costs and achieving long-term value.
Overall, the findings underscore a broader change across Africa’s commercial real estate sector, where premium office spaces are becoming increasingly expensive and competitive, with Lagos retaining its place at the top end of the market.
