India's Low Office Fitout Costs Propel Commercial Leasing Boom as GCCs and Multinationals Prioritise Value and Sustainability

New Delhi, December 7, 2025: India's commercial office leasing market has reportedly been witnessing sustained growth despite global economic uncertainties, driven primarily by the country's remarkable cost advantages in office fitouts and construction. Industry experts have noted that this affordability, coupled with high design quality and robust supply pipelines, is helping India consolidate its position as a preferred destination for global corporate occupiers and Global Capability Centres (GCCs).

India Ranks Among the Lowest for Office Fitout Costs Globally

According to industry reports, fitout costs in India's top cities, which include expenses for partitioning, finishes, lighting, air conditioning, and MEP systems, average approximately USD 75 per square foot. This reportedly makes Indian cities among the most affordable globally for office fitouts. In comparison, fitout expenses in major global cities such as New York, London, and Singapore are said to exceed USD 150 per square foot, excluding furniture, fixtures, and technology costs.

An industry expert has reportedly stated that India should not be viewed as a low-cost market but rather as a high-value market. The expert emphasised that the country's ability to deliver world-class workplaces at competitive costs is what sets it apart, particularly as GCCs consolidate their global operations in India.

Rising Global Costs Push Multinational Occupiers Toward Indian Markets

As construction and material costs continue to rise globally, companies are increasingly looking at India to manage capital expenditures more efficiently, particularly for new workplace buildouts and expansions. Industry analysts have noted that India offers several distinct advantages for corporate occupiers seeking commercial real estate investment opportunities.

India reportedly offers:

• A skilled technician and blue-collar workforce available at accessible rates
• A strong ecosystem of interior contractors and design firms
• Growing demand for wellness-centric and tech-enabled workspaces

These factors have reportedly made it easier for occupiers to achieve global design standards at lower costs, without compromising on quality or sustainability. The office leasing activity in India's top cities has been reflecting this growing preference among multinational corporations.

Corporate Focus Shifts to Employee-Centric and Future-Ready Offices

As workplace expectations evolve, occupiers, particularly GCCs, technology companies, and multinationals, are reportedly moving beyond mere cost considerations to prioritise employee well-being, smart technology integration, and environmental sustainability in their fitout decisions. The trend towards carbon-neutral offices and green workspaces has been gaining significant momentum.

Emerging office design trends reportedly include:

• Biophilic design elements incorporating natural light, plants, and open layouts
• Advanced air filtration and ventilation systems for improved indoor air quality standards
• Smart, sensor-based lighting and HVAC systems
• Collaborative and flexible workspace configurations

These investments are reportedly geared toward boosting productivity, improving employee retention, and strengthening employer branding, while aligning with global ESG and wellness mandates. Companies are increasingly seeking properties with green building certifications in India.

Strengthening the Fitout Supply Chain Critical for Long-Term Competitiveness

Industry experts have warned that India's cost advantage may narrow if local manufacturing of fitout components does not scale in parallel with demand. To retain its competitive edge in the commercial property investment landscape, India must reportedly undertake several strategic initiatives.

Key recommendations include:

• Investing in domestic production of interior systems and materials
• Enhancing logistics and supply chain efficiencies
• Promoting upskilling of the technician workforce
• Reducing dependency on imports for core fitout components

A senior real estate executive has reportedly stated that India must strategically invest in a robust, native fitout ecosystem to maintain its global competitiveness. The executive cautioned that without such investments, there is a risk of price erosion as labour costs rise and supply chains face strain.

India Poised to Lead the Future of Global Workplace Design

India's ability to deliver world-class office environments at globally competitive costs is reportedly not just sustaining but accelerating leasing activity, even amid uncertain economic conditions. With corporate occupiers focused on value, experience, and sustainability, the spotlight has shifted to how India can future-proof its fitout ecosystem to meet rising expectations without losing its cost advantage.

The growth in office leasing has also been supporting the expansion of Real Estate Investment Trusts (REITs) in the country, with India's top seven cities offering substantial REIT-worthy office space.

As the workplace of the future takes shape globally, India is reportedly not just participating in this transformation but leading with design innovation, value creation, and scale. The expansion of office markets to tier-2 and tier-3 cities is expected to further strengthen the country's position as a global commercial real estate hub.

Disclaimer: This article is for informational purposes only. The information provided herein is based on publicly available sources and industry reports. Readers are advised to conduct their own research and consult professional advisors before making any investment or business decisions. Ghar.tv does not guarantee the accuracy, completeness, or reliability of the information presented.