The average cost of designing and building workspaces has risen by 8 percent year-on-year (YoY) in India, with the average fit-out cost per sqm now ranging from $814 (Rs 61,050) in Mumbai to $669 (Rs 50,175) in Ahmedabad, according to JLL's Asia Pacific Fit-Out Cost Guide 2021/2022.
As per the findings of JLL research, Mumbai is the most expensive city to fit-out offices having a maximum average fit-out office cost of Rs 61,050 per sqm, followed by Kolkata and Delhi with an average fit-out office cost of Rs 56,625 and Rs 56,325 per sq m, respectively.
The global real estate firm said 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.
“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,” said MV Harish, Executive Managing Director, Project Development Services, JLL India.
“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 said.