NEW DELHI: India’s cost advantage, not only in office rent but also in fitout expenses, has led to record-breaking office leasing despite global uncertainties.
Average fitout costs in major cities like Mumbai, Delhi, and Bengaluru stand at $75 per sq ft, among the lowest worldwide. In comparison, leading global markets often see fitout costs surpassing $150 per sq ft, excluding furniture and technology.
“India is not merely a low-cost locale; it represents a high-value marketplace. The capacity to deliver world-class workplaces at competitive prices continues to drive leasing momentum, especially as Global Capability Centers (GCCs) expand and consolidate their global presence from India,” stated Vibhor Jain, CEO and Founder of Carbon Guardians, a firm specializing in design and managed office spaces.
With global construction costs rising, there is significant upward pressure on capital expenditures for office enhancements.
“Despite global cost fluctuations, India’s affordability and evolving workplace design trends are solidifying its status as a key market for corporate occupiers. The demand for premium office environments, matched with a strong supply pipeline, is anticipated to sustain growth in office fitouts in the coming years,” said Shashi Bushan, Executive Managing Director of Project and Development Services at Cushman & Wakefield.
GCCs are increasingly investing in high-quality workspaces that emphasize wellness, technology, and sustainability.
From biophilic designs and advanced air filtration systems to smart, tech-enabled workspaces, businesses are focusing on improving employee well-being and productivity.
“The accessible cost of our skilled labor and blue-collar workforce is significantly contributing to the rise in office demand. This dynamic is expected to evolve with ongoing upskilling. To maintain this critical advantage and prevent pricing pressures, India must strategically invest in developing robust local manufacturing for fitout components while enhancing supply chain efficiency. This will establish a more sustainable and cost-effective ecosystem, ensuring our global competitiveness over time,” explained Aashit Verma, Founder of Hanto Workspace.
