“Companies are transforming offices into more human, flexible, and technologically advanced spaces.” This is the assurance given by Vítor Cajus, Head of Project & Development Services at Cushman & Wakefield (C&W) Portugal, who reveals in an interview with idealista/news that the demand for quality space in Portugal, especially in Lisbon and Porto, has been increasing. “The traditional office, where people would go every day, is losing relevance. The future lies in spaces that promote collaboration, culture, and well-being, adapting to the new dynamics of teams,” he anticipates.

It is not surprising, then, that organizations are investing in the renovation of their spaces, in the so-called “fit out,” in order to attract workers. Vítor Cajus highlights, for example, that “enclosed environments have given way to open and collaborative areas, with a focus on well-being—natural light, green areas, rest zones, and even gyms or canteens.” “The objective is clear: to create an experience that motivates employees to return to the office, reinforcing the company’s culture and promoting productivity in a hybrid model that is here to stay,” he explains.

A recent study developed by C&W, entitled “Fit Out Cost Guide 2025”, precisely addresses the costs associated with office renovations. Lisbon is the only Portuguese city represented in the ranking, among 53 metropolises analyzed. In the capital, the average cost of fitting out an office is €1,127 per square meter (€/m2), which is more expensive, for example, than in Madrid (the Spanish capital), where the average cost is €1,083/m2.

Working in modern offices

C&W fit out projects. Credits: C&W

In general terms, what conclusions can be drawn from the study “Fit Out Cost Guide 2025,” both globally and nationally?

The conclusions are that there is increasing demand for quality space in Portugal, especially in Lisbon and Porto. The growth of hybrid work and the focus on occupant well-being are the main drivers of this trend. Compared with other European cities, it is more expensive to carry out an average fit out in Lisbon than in Madrid, for example. The study also includes a survey of industry suppliers (contractor sentiment survey), in which 68% believe that labor costs will continue to rise, 62% point to increases in materials, and 46% state that clients spent more on ESG-related materials in 2024 compared to 2023.

In the specific case of Lisbon, the only Portuguese city represented in the study, the average cost per m2 for fitting out an office ranges between €831 and €1,518, correct? What explains this difference?

Yes, and this range depends directly on the type of intervention carried out in the space. When we do a fit out we can have various types of intervention, and that level of intervention defines the final cost. To help understand, in the study we categorize the type of intervention into three major groups:

  • Minor intervention: painting, simple finishes, minimal changes to air conditioning and basic data network;

  • Medium intervention: simple glass partitions, decorative finishes, ceiling changes, and adapted air conditioning;

  • Major intervention: double glass partitions, decorative ceilings, premium finishes, and higher technological density.

How does the city of Lisbon rank compared to other metropolises?

In Southern Europe, it is more expensive to carry out an average fit out in Lisbon (€1,127/m2) than in Madrid (€1,083/m2), and we are just a few (very few) euros behind Barcelona and Paris, which show values of €1,138/m2 and €1,161/m2, respectively. If we compare with the United Kingdom, Central Europe, or Nordic countries, the difference is much greater. For example, the average fit out in London (UK) is estimated at €2,671/m2, in Frankfurt (Germany) at €2,408/m2, and in Oslo (Norway) at €1,770/m2.

“There is increasing demand for quality space in Portugal, especially in Lisbon and Porto. The growth of hybrid work and the focus on occupant well-being are the main drivers of this trend.”

The only metropolises that “compete” with Lisbon are mostly located in markets considered secondary or peripheral, such as Sofia (Bulgaria/€860/m2), Zagreb (Croatia/€750/m2), Belgrade (Serbia/€800/m2), or Ljubljana (Slovenia/€900/m2).

Office segment in Portugal

C&W fit out projects. Credits: C&W

Have costs been increasing year after year? Compared to 2024, for example, what is the difference? What justifies this trend?

In Lisbon, the increase was only 3% compared to 2024, therefore residual. The main factors remain the scarcity of materials and the increase in costs for qualified labor, an increasingly concerning issue in Portugal.

Why are companies investing in office fit outs and what motivates them to make this investment?

Investment in fit out is no longer just an aesthetic issue—it is now a strategic tool. Companies seek spaces that reflect their culture, promote team well-being, and are prepared for new hybrid models. In addition, there is growing concern with sustainability and space efficiency. Fit out makes it possible to respond to all of this, with tailor-made solutions that combine design, functionality, and technology.

Is there any industry where demand for office fit outs is more significant?

The technology sector has been one of the main drivers of demand for fit outs in Portugal, driven by the combination of qualified talent, competitive operating costs, and high quality of life. Lisbon and Porto stand out for their robust technological infrastructure, innovation-friendly environment, and ability to attract international professionals, positioning the country as a strategic destination for development centers and digital hubs.

“Companies are transforming offices into more human, flexible, and technologically advanced spaces. (…) The objective is clear: to create an experience that motivates employees to return to the office, reinforcing the company’s culture and promoting productivity in a hybrid model that is here to stay.”

IT, fintech, and digital consulting companies seek flexible, collaborative, and technologically advanced spaces that reflect their culture of innovation and help attract and retain talent. Operating mostly in hybrid models, these companies demand adaptable layouts and solutions that promote connectivity, efficiency, and team well-being.

What do these office changes consist of? What are companies doing to somehow attract more workers?

Companies are transforming offices into more human, flexible, and technologically advanced spaces. Enclosed environments have given way to open and collaborative areas, with a focus on well-being—natural light, green areas, rest zones, and even gyms or canteens. The objective is clear: to create an experience that motivates employees to return to the office, reinforcing the company’s culture and promoting productivity in a hybrid model that is here to stay.

Companies are renovating their offices

C&W fit out projects. Credits: C&W

Speaking of the national office market, is it possible to conclude that hybrid work is gaining more ground? Do you believe the office model as we knew it pre-pandemic (going to the office every day) is obsolete?

That is the million-euro question that no one knows with certainty how to answer. We have seen, all over the world and also in Portugal, the complete return to the office, and many companies have already made that desire public, such as Amazon. Still, the hybrid model continues to gain ground, because more than the work or office model, occupants now seek flexibility—including contractual flexibility—and are increasingly choosing more capable spaces, with more services for workers. The traditional office, where people went every day, is losing relevance. The future lies in spaces that promote collaboration, culture, and well-being, adapting to the new dynamics of teams.

The study “Fit Out Cost Guide 2025” also addresses reinstatement costs, which in Greater Lisbon range between €109 and €212/m2, correct? What exactly are we talking about, and where does Lisbon rank?

Yes, the study points out that reinstatement costs in Greater Lisbon range between €109 and €212/m2, depending on the level of intervention. We are talking about expenses associated with restoring the space to its original state—such as dismantling infrastructures, removing finishes, and preparing for new occupation. Lisbon ranks above cities like Madrid and Barcelona, and at the level of Rome and Milan, reflecting greater sophistication of spaces and technical requirements. This reality reinforces the importance of well-informed decisions in the choice and management of offices.

“The traditional office, where people went every day, is losing relevance. The future lies in spaces that promote collaboration, culture, and well-being, adapting to the new dynamics of teams.”

Is it possible to define what would be the ideal office? What could not be missing in such an office?

The ideal office is not a one-size-fits-all model; it is the one that meets the specific needs of each company and its people. But there are elements that are now practically indispensable: flexibility in layouts, integrated technology, collaborative areas, well-being spaces, and complementary services such as canteens, gyms, or psychological support. The space must be more than functional—it must be attractive, inspiring, and capable of creating a positive experience for those who work there. That is what makes the difference in talent retention and organizational culture.

The office segment seems to be in good health, with demand remaining high. And what about supply? Are there still spaces in Lisbon to accommodate companies?

Yes, especially in central areas such as the CBD and the Western Corridor. But our concern is with 2026, when the supply of new and quality offices will be very limited—most projects are only scheduled for 2027/2028. Demand has evolved differently: in Lisbon it remained solid while in Porto it was more unstable.

The common problem is the shortage of qualified supply: only 16% of Lisbon’s stock is Grade A and many buildings no longer meet current requirements. In Lisbon, the pipeline is relevant, with 330,000 m2 expected in the next three years, 44% of which are already pre-leased. In Porto, absorption fell 66% compared to 2024 and the pipeline is 170,000 m2, with 22% pre-leased, concentrated in the CBD and Matosinhos.