Mumbai— India stands out in the Asia-Pacific region for its unique cost structure in office fit-outs, according to a new report released Thursday by real estate consultancy JLL.
The report highlights that builders’ works—typically the most labor-intensive component—make up just 32% of total fit-out costs in India, compared to the regional average of 41%. This difference underscores India’s competitive labor market, which significantly reduces construction-related expenses.
Conversely, mechanical and electrical services—which include HVAC systems, electrical infrastructure, fire safety, and uninterruptible power supply (UPS)—constitute a higher share of costs in India at 29%, well above the Asia-Pacific average of 21%. JLL attributes this to less comprehensive landlord provisions in India, meaning tenants often bear more responsibility for outfitting these critical systems.
“India’s fit-out cost structure is unique within the APAC region,” said Jipujose James, Managing Director, Project & Development Services (PDS), India, JLL. “While companies benefit from lower labor costs, they also need to invest more in technology and essential mechanical and electrical services. This dual dynamic reflects the challenges and opportunities of building modern, sustainable workplaces in India.”
James advised companies planning office fit-outs in India to consider not just cost structure but also variables like currency fluctuations and import duties. These factors are essential for accurate budgeting and for designing efficient, future-ready workspaces.
Technology and smart office features are increasingly integral to Indian workspaces, with spending on security, IT, and audiovisual systems accounting for 17% of total fit-out costs. This trend indicates a growing focus on digital infrastructure in office design. Furniture, fixtures, and equipment (FFE) contribute 16% of total costs, although the report notes that actual expenses can vary depending on design specifications, taxes, and whether furnishings are imported.
Dr. Samantak Das, Chief Economist and Head of Research & REIS at JLL India, emphasized that the push toward sustainable and high-performance office spaces is now a key strategic priority for companies. “Our analysis shows that the need to attract and retain talent is driving a new wave of investment in intelligent and eco-friendly work environments,” he said.
India is also pioneering new approaches to office reinstatements, shifting toward collaborative, sustainability-driven models. “These models promote the reuse and enhancement of existing infrastructure,” Dr. Das explained, “delivering not only long-term cost savings but also reducing environmental impact—an approach that aligns with global ESG goals.”
The report paints a picture of India as a cost-effective yet forward-thinking market for companies seeking to establish or expand office operations in the Asia-Pacific region. (Source: IANS)
