The cost of office fit-outs in India continues to rise in 2024, with Mumbai emerging as the most expensive market at $73 per square foot, followed closely by Delhi at $69 per square foot, according to Cushman & Wakefield’s latest Fit-Out Cost Guide. Bengaluru ranks third at $67 per square foot, while Ahmedabad, Chennai, Hyderabad, Kolkata, and Pune each stand at $65 per square foot.

Despite a steady 3% increase in fit-out costs across India’s top eight cities, the country remains one of the most cost-effective destinations in the Asia-Pacific (APAC) region for office developments. This affordability attracts businesses looking to expand their workspaces while maintaining financial efficiency. However, a rising trend in ‘premiumization’ is driving companies to invest more in high-quality, people-centric, and technology-enabled office spaces.

Shashi Bushan, Managing Director of Project and Development Services at Cushman & Wakefield, noted, “While fit-out costs have seen only a marginal increase YOY, the overall cost of office spaces has risen due to premiumization. Occupiers, especially Global Capability Centers (GCCs), are investing more in creating high-quality work environments and prioritizing wellness, technology, and sustainability.” He emphasized the growing adoption of innovative, tech-enabled workspaces that enhance employee well-being and productivity.

This shift toward modern and sustainable office designs has led to a surge in wellness-focused spaces, incorporating biophilic elements, ergonomic workstations, and advanced air filtration systems. Many companies, particularly multinational corporations and domestic firms, are making strategic investments to attract top talent and reflect their brand identity through upgraded office environments.

The rising demand for flexible and hybrid office models has also encouraged startups and small businesses to opt for ready-to-move-in spaces. Many are turning to plug-and-play, coworking, and builder-fitted offices, which offer cost-efficient solutions without the complexity of custom fit-outs. The market’s growing focus on sustainability is also evident, with many developments aiming for LEED and IGBC certifications and incorporating energy-efficient designs to lower operational costs.

On a broader APAC scale, Tokyo remains the most expensive city for office fit-outs at $195 per square foot, while Jakarta remains the most affordable at $58 per square foot. The report also highlights that North Asian cities, including Tokyo, Seoul, and Osaka, experienced the highest cost inflation at 16%, while Australian cities averaged an 11% increase.

Dr Dominic Brown, Head of International Research, EMEA & APAC, commented, “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.”

As workplace trends evolve, India’s competitive pricing and commitment to modern, employee-centric office environments position it as a key market for corporate occupiers seeking high-quality, cost-efficient workspace solutions.