Office fit-out costs jump as demand for sustainable workspaces grows, Mumbai tops the list

Office fit-out costs surge in India as demand for sustainable workspaces grows, Mumbai tops the list

The average cost to make a vacant space into a usable office surged in India in 2024, with Mumbai proving the most expensive at $73 (Rs 6,303) per square foot (sq ft), followed by the Delhi-National Capital Region market at $69 (Rs 5,958) per sq ft, according to Cushman & Wakefield’s ‘Fit-Out Cost Guide’ report.

Bengaluru was next at $67 (Rs 5,786) per sq ft, while Chennai, Hyderabad, Kolkata, Ahmedabad and Pune stood at $65 (Rs 5,613) per sqft.

According to the report, while India recorded an average 3 percent rise in fit-out cost across the top eight cities, it remains one of the most cost-effective office-fit-out destinations in the Asia-Pacific (APAC) region, making it an attractive market for businesses expanding their workplaces.

The report highlighted that while project costs have seen only a marginal increase, companies are spending more per square foot to create people-centric, tech-enabled and sustainable work environments for their employees.

Shashi Bushan, managing director, project and development services, Cushman & Wakefield, said that while fit-out costs have seen only a marginal increase on a yearly basis, the overall cost of office spaces has risen due to premiumisation.

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“From biophilic designs and advanced air filtration systems to smart, tech-enabled workspaces, businesses are focusing on employee well-being and productivity. This shift reflects a growing demand for modern, future-ready offices that enhance the workplace experience and align with evolving global standards," he said.

Sustainable workspaces in demand

The push for sustainability has become a significant focus, with many office developments targeting green certifications from bodies such as LEED and IGBC, and integrating energy-efficient solutions to reduce operational costs and meet evolving tenant expectations.

Occupiers including multinationals are prioritising high-quality workspaces that enhance the employee experience, promote well-being and align with global design and sustainability standards.

“Occupiers—especially GCCs (global capability centres)—are investing more in creating high-quality work environments that prioritise wellness, technology, and sustainability,” Bushan said.

Additionally, wellness-focused designs—featuring environment-friendly and ergonomic spaces, and enhanced air quality systems—are becoming integral to workplace planning.

Vibhor Jain, founder and CEO of Carbon Guardians, a company providing carbon-neutral managed office spaces, said that the rising demand for premium, tech-enabled and sustainable office spaces reflects a broader shift in how businesses approach employee well-being and environmental responsibility.

“As organisations reimagine the workplace, embedding wellness, technology and sustainability is no longer optional—it’s essential for future-proofing operations and attracting a young workforce that connects with purpose-driven, sustainability-focused brands. With its young working population, cost advantages and evolving design standards, India is uniquely positioned to lead this transformation,” Jain said. 

The report further said that Tokyo retained the number 1 spot as the most expensive city in APAC for office fit-outs, with costs reaching $195 (Rs 16,828) per sq ft, while Jakarta was the most affordable at $58 (Rs 5005) per sq ft. North Asian cities, including Tokyo, Seoul and Osaka, saw the highest cost inflation at 16 percent, while Australian cities averaged 11 percent.

Experts said that despite global cost fluctuations, India's affordability and evolving workplace design trends continue to reinforce its position as a key market for corporate occupiers.

“The demand for high-quality office environments, coupled with a strong supply pipeline, is expected to drive sustained growth in office fit-outs over the coming years,” Bushan said.