India offers unique cost structure for office fit-outs in Asia Pacific: Report

Mumbai, May 15 (IANS) India presents a unique cost structure for office fit-outs compared to the broader Asia-Pacific region, a report said on Thursday.

Builders' works account for 32 per cent of fit-out costs in India, significantly lower than the 41 per cent average in the Asia-Pacific region — reflecting India's competitive labour market, according to a JLL report.

Mechanical and electrical services, including heating, ventilation, and air conditioning (HVAC), electrical, fire and UPS systems, account for 29 per cent of overall costs in India, surpassing the APAC average of 21 per cent.

This higher percentage suggests that landlord provisions in India may be less comprehensive, requiring tenants to invest more in these essential systems.

“India's fit-out cost structure presents a unique profile within the APAC region. While we see significant savings in labour-intensive areas, there's a clear trend towards higher investment in technology and mechanical and electrical services. This reflects both the challenges and opportunities in creating modern, sustainable workspaces in India,” said Jipujose James, Managing Director, PDS, India, JLL.

Companies planning fit-out projects in India are advised to carefully consider these factors, along with potential currency fluctuations and import duties, to accurately budget and create attractive, modern office spaces that meet their specific needs and objectives, he added.

The adoption of technology and smart features is evident in India's fit-out landscape, with Security, IT, and AV spending accounting for 17 per cent of total expenditure.

This reflects a growing trend towards technologically advanced office spaces across the country. Furniture, fixtures and equipment (FFE) contribute 16 per cent to the overall cost.

It's worth noting that this benchmark is based on imported furniture, and actual costs may vary depending on specifications, import duties, and taxes.

“Our analysis reveals that creating high-performance, sustainable workspaces has become a paramount strategic imperative in the Indian market, driven by a desire to attract and retain talent,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Notably, India is pioneering a distinctive approach to reinstatements, moving towards collaborative, sustainable models.

“These models prioritise the reuse and enhancement of existing infrastructure, reflecting a commitment to responsible and forward-thinking real estate practices that not only reduce environmental impact but also offer long-term cost benefits for organisations,” added Dr Das.

—IANS

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