India’s Fit-Out Costs Reflect Unique Trends in Labour, Tech, and Sustainability: JLL Report

India’s office fit-out landscape stands apart in the Asia Pacific (APAC) region, with a cost structure shaped by affordable labour and rising tech investments, according to the APAC Fit-Out Cost Guide 2025 released by JLL. The report highlights how India’s competitive labour market and evolving workplace priorities influence where companies spend—and save—on office build-outs.

Builders’ work, typically the most significant component in fit-outs, accounts for 32% of total costs in India. This is significantly below the APAC average of 41%, thanks mainly to lower labour costs. “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.”

Mechanical and Electrical (M&E) systems, which include HVAC, electrical, fire safety, and UPS installations, make up 29% of fit-out expenses in India, well above the regional average of 21%. This indicates that tenants in India often bear more responsibility for critical infrastructure, as landlord provisions tend to be more limited.

Another key trend is the integration of technology. According to the report, spending on IT, AV, and security systems comprises 17% of the total fit-out cost. This reflects the growing demand for innovative, digitally-enabled work environments that support hybrid work and enhance office functionality.

Furniture, Fixtures & Equipment (FF&E) account for 16% of the costs. However, this figure is based on imported furniture, which may not reflect local sourcing strategies. Companies can optimise budgets by opting for domestic products, especially in light of taxes and import duties that inflate costs.

JLL also noted that professional services—including project management and consultancy—constitute 5% of the total cost. Yet, their impact is crucial, particularly as businesses push for high-quality, sustainable office environments to attract talent and increase in-person engagement.

“Companies planning fit-out projects in India are advised to carefully consider these factors, along with potential currency fluctuations and import duties, to budget and create attractive, modern office spaces accurately,” James added.

Despite growing cost pressures, the focus remains on sustainability and long-term value. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, pointed to innovative approaches like sustainable reinstatement models. “India is pioneering a distinctive approach to reinstatements, moving towards collaborative, sustainable models… These practices reduce environmental impact and offer long-term cost benefits,” Das said.

The report underscores a clear shift in India’s office market: a move away from purely cost-driven decisions toward strategic investments that balance value, sustainability, and employee experience. As companies reassess their workplace needs in the post-pandemic era, India’s evolving fit-out trends are setting a distinctive example in the APAC region.