India presents a unique cost structure for office fit outs compared to the broader Asia-Pacific region, according to JLL. Builders' work, while still the largest component at 32% of total costs, is significantly lower than the APAC average of 41%. This reduction reflects India's competitive labor market, offering cost advantages in this category.
Mechanical and Electrical (M&E) services, including HVAC, electrical, fire, and UPS systems, account for 29% of overall costs in India, surpassing the APAC average of 21%. This higher percentage suggests that landlord provisions in India may be less comprehensive, requiring tenants to invest more in these essential systems.
“India's fit-out cost structure presents a unique profile within the APAC region," said Jipujose James, Managing Director, PDS, India, JLL. “While we see significant savings in labour-intensive areas, there's a clear trend towards higher investment in technology and M&E services. This reflects both the challenges and opportunities in creating modern, sustainable workspaces in India. Companies planning fit-out projects in India are advised to carefully consider these factors, along with potential currency fluctuations and import duties, to accurately budget and create attractive, modern office spaces that meet their specific needs and objectives,” he added.
The adoption of technology and smart features is evident in India's fit-out landscape, with Security, IT, and AV spending accounting for 17% of total expenditure. This reflects a growing trend towards technologically advanced office spaces across the country. Furniture, Fixtures & Equipment (FFE) contribute 16% to the overall cost. It's worth noting that this benchmark is based on imported furniture, and actual costs may vary depending on specifications, import duties, and taxes.
Professional services make up the remaining 5% of fit-out costs in India. The guide emphasizes that organizations are increasingly focused on creating high-quality, sustainable offices to boost attendance and attract talent. The choice of materials and finishes can significantly impact both the quality of workplaces and overall costs.
Overall, while the general pattern of cost allocation is similar across cities, there are subtle variations that reflect local market conditions and priorities in each urban center.
Delhi: Builders' works form the largest cost component, followed by M&E services. FFE costs are moderate, while Security, IT & AV works are relatively low. Professional services account for the smallest proportion.
Kolkata: The city shows a notably higher proportion of M&E services compared to other cities. Builders' works remain significant but less dominant than in other cities. FFE and Security, IT & AV works are moderate, with professional services being the smallest component.
Pune: The cost allocation in Pune closely resembles the overall Indian average. Builders' work dominates, followed by M&E services. FFE and Security, IT & AV works are nearly equal, with professional services being the smallest slice.
Bangalore: The cost structure is like Pune, with builders' works being the largest component. M&E services, FFE, and Security, IT & AV works follow in descending order, with professional services being the smallest.
Hyderabad: The city shows a slightly higher proportion of builders' works compared to the Indian average. M&E services are the second largest component, followed by Security, IT & AV works and FFE. Professional services remain the smallest cost driver.
Chennai: The most notable feature is the larger proportion of Security, IT & AV works compared to other cities. Builders' work still dominates, followed by M&E services. FFE costs are relatively lower, and professional services remain the smallest component.
