Mumbai is the most expensive city to fit out offices followed by Kolkata and Delhi
New Delhi, November 25, 2021: The average cost of designing and building workspaces has risen by 8% year-on-year in India, with the average fit-out cost per sqm now ranging from USD814 (INR 61,050) in Mumbai to USD 669 (INR 50,175) in Ahmedabad (least) according to JLL’s Asia Pacific Fit-Out Cost Guide 2021/2022.
Mumbai is one of the most expensive cities to fit out in India
The global real estate firm reported that the factors behind the price increases in most markets are due to direct implications of the pandemic, such as supply chain disruptions, labour shortages, material availability and the rising cost of raw materials.
MV Harish, Executive Managing Director, Project Development Services, JLL India stated, “As most organizations open their offices for re-entry, we’re seeing a significant jump in pricing for office fit-outs. Given the progress of the nation’s vaccine rollout, fiscal spending is likely to remain elevated as the recovery is still prone to setbacks. Consumption and investment should improve as restrictions ease.”
“Material availability and disruption in the supply chain are predicted to be the biggest cost drivers for 2022. Increased competition and aggressive pricing of margins in cities such as Pune, where contractors are chasing reduced work, may offset some of these price hikes,” he further added.
JLL research reveals that over the next 12 months higher spending will be witnessed in areas of audio visual (AV), M&E, sustainability, furniture, wellness facilities and partitions. According to the report, the top three areas that business leaders have earmarked for further investment in 2022 are technology and audio-visual tools, mechanical and electrical facilities, like sensors and filtration, and sustainability features, such as rooftop gardens, indoor greenery and water conservation.
Average 2021/2022 office fit-out cost
Source: JLL APAC Fit-Out Cost Guide 2021/2022
As per the findings of JLL research, Mumbai is the most expensive city to fit-out offices having maximum average fit-out office cost of INR 61,050 per sqm, followed by Kolkata and Delhi with average fit-out office cost of INR 56,625 and INR 56,325 per sqm respectively.
Sustainability will shape the future of office design
Despite rising costs, office design will continue to feature strongly on many companies’ agendas in the year ahead.
The building environment is in the epicentre of all the environmental and social impacts. The built environment currently accounts for almost 40% of carbon emissions. Building developments are responsible for 50% of raw materials consumed globally. Decarbonizing the built environment is a top priority. Real estate is key to both making net zero goals a reality and driving economic and social equality. Adopting sustainable construction practices will help in preserving our scare resources for our future generations and construction activities will have lesser impact on the environment.
With more and more employees wanting to get involved in their organization’s sustainability initiatives, we will see a significant acceleration of sustainability initiatives which will shape the future of office design. According to JLL’s “Sustainability in the built environment: An employee perspective” report, 50% of employees expressed a desire to contribute to sustainability agendas to meet future carbon reduction targets, identifying real estate as a major catalyst for carbon reduction.
To download the JLL’s Asia Pacific Fit-Out Cost Guide 2021/2022, please click here.
Corporate Comm India (CCI Newswire)