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The average office fit-out costs continue to rise in 2024, with Mumbai leading as the most expensive market at USD 73 per sq ft, followed by Delhi at USD 69 per sq ft, according to Cushman & Wakefield's latest Fit-Out Cost Guide. Among the other top eight cities, Bengaluru follows at USD 67 per sq ft, while Ahmedabad, Chennai, Hyderabad, Kolkata and Pune stand at USD 65 per sq ft.
Cushman & Wakefield's Fit Out Cost Guide covers refurbishments and reinstatements for 33 key regional office markets. According to the report, while India recorded a steady 3 per cent rise in fit-out cost across the top eight cities, it remains one of the most cost-effective office-fit-out destinations in the Asia Pacific (APAC) region, making it an attractive market for businesses expanding their workplaces.
The report also observes that while project costs have seen only a marginal increase, companies are spending more per square foot to create people-centric, tech-enabled and sustainable work environments for their employees. Occupiers also prioritise high-quality workspaces that enhance employee experience, promote well-being and align with global design and sustainability standards.
A surge in 'premiumisation' is evident across metro markets, with multinational corporations and domestic firms investing in modern office environments to attract top talent and reflect brand identity. Additionally, wellness-focused designs featuring biophilic elements, ergonomic spaces, and enhanced air quality systems are becoming integral to workplace planning.
Startups and SMEs, which often lack the bandwidth or expertise to manage custom fit-outs, are increasingly opting for ready-to-move-in, plug-and-play, co-working, and builder-fitted spaces. This demand for adaptable and technology-integrated workspaces is accelerating the shift toward hybrid office models and flexible workspaces that foster collaboration.
The push for sustainability has also become a major focus, with many office developments targeting LEED and IGBC certifications and integrating energy-efficient solutions to reduce operational costs and meet evolving tenant expectations.
Shashi Bushan, Managing Director of Project and Development Services, said, "While fit-out costs have seen only a marginal increase YOY, the overall cost of office spaces has risen due to premiumisation. Occupiers, especially Global Capability Centers (GCCs), are investing more in creating high-quality work environments and prioritising wellness, technology, and sustainability. From biophilic designs and advanced air filtration systems to smart, tech-enabled workspaces, businesses focus on employee well-being and productivity. This shift reflects a growing demand for modern, future-ready offices that enhance workplace experience and align with evolving global standards."
He adds, "Despite global cost fluctuations, India's affordability and evolving workplace design trends continue to reinforce its position as a key market for corporate occupiers. The demand for high-quality office environments and a strong supply pipeline are expected to drive sustained growth in office fit-outs over the coming years."
According to the report, Tokyo remains the most expensive city in APAC for office fit-outs, with costs reaching $195 per sq. ft., while Jakarta remains the most affordable at $58 per sq ft. North Asian cities, including Tokyo, Seoul, and Osaka, saw the highest cost inflation at 16 per cent, while Australian cities averaged 11 per cent.
Head of International Research, EMEA & APAC, Dr Dominic Brown, said, "As a region, Asia Pacific is one of the more expansionary, and we have seen more growth and slightly more positive sentiment about the market by contractors here than in other regions."
"Measured by both contractor sentiment and actual cost, it appears that the worst of the pricing pressure from recent years has resolved, and prices for raw materials are on the way down, while tight labour markets continue to drive some wage inflation," he added.
