Cheaper Fitout Costs Keep Office Leasing on Growth Path in India

India’s cost advantage not just in office rentals but also in fitouts has helped office leasing continue to break records despite global uncertainties.

Construction costs have also increased globally, applying significant upward pressure to tenant capital expenditures for office improvements. Fitout costs in top cities such as Mumbai, Delhi, and Bengaluru average $75 per sq ft, among the lowest globally. In contrast, major global markets often see fitout costs exceed $150 per sq ft, excluding furniture, fixtures, and technology.

The ability to deliver world-class work-places at competitive costs continues to fuel leasing momentum, especially as GCCs scale and consolidate their global footprint from India.

“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, coupled with a strong supply pipeline, is expected to drive sustained growth in office fitouts over the coming years. Occupiers, especially global capability centres (GCCs), are investing more in creating high quality work environments that prioritise wellness, technology, and sustainability.

From biophilic designs and advanced air filtration systems to global price fluctuations smart, tech-enabled workspaces, businesses are focusing on emplo yee well-being and productivity. The accessible cost of our skilled technician and blue-collar workforce is also a factor in the increase in demand for offices, and it is bound to change with ongoing upskilling.

To retain this critical edge and avoid price erosion, India must strategically invest in developing robust native manufacturing for fitout com-ponents and enhance overall supply chain efficiency.

This will create a more durable, cost-effective ecosystem, maintaining our global competitiveness for the long haul,”