Daijiworld Media Network - New Delhi
New Delhi, Mar 14: Major Indian office markets continue to rank among the most cost-competitive in the Asia-Pacific region, with mid-specification office interior costs averaging about $449 per square metre across Bengaluru, Mumbai and Delhi NCR, according to a report released on Saturday by property consultancy Knight Frank.
The report stated that basic office fit-out costs in leading Indian cities average around $264 per square metre, while premium specifications reach approximately $838 per square metre (about ?75,312 per sq m).
According to the consultancy, India’s relatively low labour costs, well-established contractor ecosystem and strong domestic sourcing capabilities help keep workplace construction and interior development costs significantly lower than in many other regional markets. This cost advantage continues to attract multinational companies expanding technology operations and setting up Global Capability Centres in major Indian office hubs.
Reinstatement costs — the expense involved in restoring leased office spaces at the end of tenancy — remain low at around $30 per square metre, giving occupiers greater flexibility when exiting leases.
Although the report expects regional office fit-out costs to rise by about 2–5 per cent over the next year, it noted that India still offers one of the most cost-efficient environments for workplace development.
The analysis compared office fit-out costs across 23 cities in Australasia, East Asia, Southeast Asia and India for the fourth quarter of 2025. It found that India’s competitive labour market, robust local supply chains and lower compliance-related costs allow companies to create high-quality workspaces at relatively modest investment levels.
At the regional level, Singapore was identified as the most expensive city for office fit-outs, primarily due to higher labour costs, limited contractor availability and strict sustainability requirements.
Shishir Baijal, International partner and chairman and managing director of Knight Frank India, said India’s ability to combine large-scale office development with cost efficiency would continue to support corporate expansion in the long term.
The report also highlighted that across the Asia-Pacific region, growing emphasis on green building certifications, energy monitoring and stricter material compliance standards is pushing up baseline fit-out costs.
It added that the Design & Build (D&B) project delivery model can reduce project timelines by 20–30 per cent compared with traditional construction approaches, which is particularly beneficial for companies operating in fast-growing sectors.