How Does India’s Office Fit-Out Cost Structure Compare in the Asia Pacific?

Mumbai, May 15 (NationPress) India showcases a distinctive cost structure for office fit-outs when evaluated against the wider Asia-Pacific area, as reported on Thursday.

In India, builders' labor constitutes 32 percent of fit-out expenses, which is notably lower than the 41 percent average seen across the Asia-Pacific region. This disparity highlights India's competitive labor market, according to a report from JLL.

Mechanical and electrical services, which encompass heating, ventilation, air conditioning (HVAC), electrical, fire, and UPS systems, make up 29 percent of total costs in India, exceeding the 21 percent average in APAC.

This elevated percentage indicates that landlord provisions in India may be less extensive, compelling tenants to invest more in these critical systems.

“India's fit-out cost profile is unique within the APAC context. While we observe significant savings in labor-intensive sectors, there is a clear shift towards greater investment in technology, as well as mechanical and electrical services. This trend underscores both the challenges and opportunities of developing modern and sustainable workspaces in India,” stated Jipujose James, Managing Director, PDS, India, JLL.

Businesses contemplating fit-out initiatives in India should take these factors into account, including potential currency fluctuations and import tariffs, to create appealing and contemporary office environments that align with their goals, James added.

The incorporation of technology and smart features is evident in India's fit-out sector, with expenditure on Security, IT, and AV accounting for 17 percent of total costs.

This reflects a growing inclination towards technologically advanced office environments throughout the nation. Furniture, fixtures, and equipment (FFE) contribute 16 percent to overall expenses.

It's important to note that this benchmark is based on imported furniture, and actual costs may differ based on specifications, import duties, and taxes.

“Our analysis indicates that the creation of high-performance, sustainable workspaces has become a crucial strategic goal in the Indian market, motivated by the need to attract and retain talent,” commented Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Importantly, India is leading a unique approach to reinstatements, progressing towards collaborative and sustainable models.

“These models emphasize the reuse and enhancement of existing infrastructure, demonstrating a commitment to responsible and future-oriented real estate practices that not only mitigate environmental impact but also provide long-term cost advantages for organizations,” Dr. Das added.