Office fit-outs are increasingly becoming a significant revenue source for operators of flexible workspaces.
In the first half of 2025, India saw a steady 3% rise in fit-out costs across its top eight cities. According to Cushman & Wakefield, India remains one of the most cost-effective locations for office fit-outs in the Asia-Pacific region, making it an appealing market for businesses looking to expand their workspaces.
With a gross leasing of 42 million square feet during this timeframe, the sector is poised to exceed 90 million sqft of leasing activity annually for the first time.
“The increasing need for customized work environments has shifted fit-outs from being an ancillary service to a core business stream for managed workspace operators. Today’s enterprises seek partners capable of providing complete workspace solutions rapidly and efficiently,” stated Amit Ramani, Chairman and Managing Director of Awfis Space Solutions Ltd.
The company has launched a Design & Build vertical to facilitate fit-out services.
Global capability centers, which currently make up nearly 40% of office leasing in India, are projected to grow from 1,700 centers to 2,400 by 2030.
Awfis Space Solutions reported revenues of Rs 58 crore from its fit-out operations, with a robust pipeline ahead.
“The surge in gross leasing directly translates into a heightened demand for office fit-outs. Fit-outs have evolved from a peripheral service to a central business stream for us, significantly boosting revenues while emphasizing the importance of designing and constructing sustainable office interiors,” commented Mohit Gambhir, Co-Founder and Executive Director of Carbon Guardians, a managed offices firm.
India’s status as one of the most economical fit-out destinations in the APAC region makes it a compelling option for both global and local tenants aiming for efficient scaling.
“Our integrated real estate-as-a-service model encompasses co-working, enterprise solutions, and turnkey fit-outs, positioning us to offer sustainable, flexible, and design-focused workplaces across metropolitan and emerging tier-2 and tier-3 hubs,” said Umesh Sahai, Managing Director of EFC (I) Limited.
The company has recently won fit-out contracts valued at Rs 57 crore and has been awarded two Passport Seva Kendra projects in Hyderabad.
ICRA forecasts that flexible office supply will grow to 125 million square feet by 2027, up from approximately 80 million sqft in 2024.
A tech-enabled workspace consultancy, Altre, has recently initiated its design and build tech platform, bringing on Anurag Tyagi as CEO. Tyagi has prior experience with multinational companies like Morgan Stanley and ICICI Bank.
In 2024, Mumbai is expected to be the costliest market in India for office fit-outs at $73 per square foot, followed closely by Delhi at $69 per square foot. Bengaluru follows with $67 per square foot, while Ahmedabad, Chennai, Hyderabad, Kolkata, and Pune all stand at $65 per square foot.
