Lagos becomes Africa’s most expensive hub for corporate office projects, ahead of Nairobi and Johannesburg

Lagos has emerged as Africa’s most expensive city for premium office fit-outs, highlighting how rising demand for Grade A workspaces and structural cost pressures are reshaping commercial real estate across the continent.

• Lagos has become Africa's most expensive city for premium office fit-outs, with costs reaching $2,718 per square metre.
• This trend is driven by strong demand for Grade A workspaces, reliance on imported materials, currency volatility, and specialist systems.
• Turner & Townsend’s report ranks Lagos top in real dollar terms, while Nairobi leads in economic comparability, and Johannesburg follows Lagos in actual spend.
• African commercial real estate is increasingly shaped by global trends, with companies seeking modern, technology-enabled, amenity-rich office environments.

The finding comes from Turner & Townsend’s Global Office Fit-Out Cost Guide 2026, which tracks the cost of delivering high-specification office spaces across 58 global cities.

The report shows that African markets are increasingly being shaped by the same global trends seen in major financial hubs, where companies are prioritising modern, technology-enabled workplaces.

A combination of strong demand, a limited pool of top-tier contractors, and constrained supply has pushed New York back to the top of global office fit-out costs, with average premium fit-outs rising 4% to $5,886 per square metre.

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London remains the second most expensive market globally at $5,872 per square metre, while Tokyo ranks among the top ten, with costs rising to $4,814 per square metre amid tightening supply and strong demand for Grade A space.

In Lagos, high-specification office fit-outs now cost about $2,718 per square metre, making it the highest nominal cost among African cities surveyed. The figures reflect the real dollar cost companies face when developing premium Grade A office space.

Why Lagos leads Africa in office fit-out costs

While Nairobi tops Africa in the report’s global fit-out cost index at about $2,081 per square metre, that ranking reflects a comparative economic measure rather than actual spending.

In real dollar terms, Lagos is the most expensive market, followed by Johannesburg at $2,026 per square metre.

The difference reflects the report’s dual methodology: the ranking index adjusts for broader economic comparability across markets, while nominal figures reflect actual dollar expenditure.

Lagos’ elevated costs are driven by reliance on imported materials, currency volatility, logistics constraints, and the high cost of specialist mechanical, electrical, and plumbing systems required for modern Grade A offices.

Across Africa, the report highlights a growing “flight to quality,” as firms invest in premium, technology-enabled workplaces designed to support collaboration, productivity, and employee wellbeing.

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Despite subdued occupier demand in parts of the region, developers are focusing on higher-quality assets in major business hubs where multinational firms are consolidating operations.

Wendy Cerutti, Head of Real Estate in Africa at Turner & Townsend, said global shifts in workplace expectations are increasingly visible across African markets, with organisations prioritising high-quality, amenity-rich environments.

She noted that balancing rising costs with long-term value will be critical for occupiers as office projects become more complex and expectations continue to rise.

The findings highlight a broader shift in Africa’s commercial real estate landscape, where premium office space is becoming more expensive and competitive, with Lagos firmly positioned at the top end of the market.