Office fit-out costs in India continued to rise in 2024, with Mumbai leading at US$73 per sq. ft., followed by Delhi at US$ 69 per sq. ft., according to Cushman & Wakefield’s latest Fit-Out Cost Guide. Bengaluru follows at US$67 per sq. ft., while Ahmedabad, Chennai, Hyderabad, Kolkata, and Pune stand at US$ 65 per sq. ft.

Despite a three per cent year-on-year increase, India remains one of the most cost-effective office fit-out destinations in the Asia Pacific (APAC) region. The report notes a shift towards premium, tech-enabled, and sustainable workspaces as companies invest more per square foot to enhance employee experience and align with global design standards.

""A surge in premiumisation is evident across metro markets, with multinational corporations and domestic firms investing in modern office environments to attract top talent and reflect brand identity,"" the report states. Occupiers are prioritising biophilic designs, ergonomic spaces, and air quality enhancements to promote well-being and productivity.

Startups and SMEs are increasingly opting for plug-and-play and co-working spaces due to cost efficiency and flexibility, while sustainability remains a key focus, with developers targeting LEED and IGBC certifications.

""While fit-out costs have seen only a marginal increase YOY, the overall cost of office spaces has risen due to premiumisation. Occupiers—especially Global Capability Centers (GCCs)—are investing more in creating high-quality work environments that prioritize wellness, technology, and sustainability,"" said Shashi Bushan, Managing Director, Project and Development Services, Cushman & Wakefield.

Globally, Tokyo remains the most expensive city in APAC for fit-outs at US$195 per sq. ft., while Jakarta is the most affordable at US$58 per sq. ft. The report suggests that as material costs stabilise, labour wages continue to drive inflation in certain markets.