Office fit-out costs across India increase slightly, up 4.5% Year-on-Year: JLL

Leasing office space in sustainable buildings is becoming non-negotiable for occupiers committed to ESG. Among other factors, sustainable fit outs are gaining prominence as an initiative to decarbonise workplaces. In a survey of 240 CRE leaders across Asia Pacific, one-in-two cite sustainable fit-outs as a priority to be actioned within the next three years. This confirms that sustainability is now a key driver in the way occupiers acquire, fit out, and manage their assets.

While ESG commitments are a key driver of sustainable fit-outs, cost savings over the long term can offset upfront Capital Expenditure (CAPEX) costs. Sustainable materials or pieces of equipment may be more expensive upfront but those with better energy ratings or longer lifespans will save businesses money in the long run.

Responding to inflationary pressures that projects are facing, one-third of JLL market leaders in Asia Pacific report that pursuing a sustainable design is dependent on the overall project cost. 56% also confirmed that reduced CAPEX on initiatives was being considered to work within budgets, the bulk of which was in Australia and Southeast Asian markets.

In the last 12 months, leaders have been reporting increasing sentiment and strong pipelines, in face of inflation continuing to increase. The greater stability in the supply chain and a normalizing of raw material costs has started to reduce risk premiums and lead to tighter pricing in many locations. JLL believes fit-out cost increases will continue their trend in moderation over the next 12 months as these challenges unwind, unless a significant economic event flattens or reverses current trends.

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JLL is India’s premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi and Coimbatore) and over 130 tier-II and III markets with a cumulative strength is over 13,000 professionals.

The Firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education. For further information, please visit jll.co.in.