Companies now investing in premium office fit-outs
Companies are increasingly investing in office fit-out, prioritising higher specifications to enhance employee engagement and wellbeing, aiming to boost attendance, retention and attract new talent, according to experts.
Data from Savills India shows a significant shift in office fit-outs, with about 35% now categorised as standard, 50% as mid-grade and 15% as high-grade, compared with pre-pandemic figures of 60%, 30%, and 10%, respectively, indicating a growing preference for premium spaces.
«This trend supports the hypothesis that office occupiers are placing greater emphasis on higher-spec offices compared to a decade ago, with the aim of attracting and retaining talent by offering superior work environments,» Savills India chief executive Anurag Mathur said.
Fit-out cost inflation remained relatively stable at 4-6% during the 2015-20 period, before the Covid-19 outbreak brought significant volatility to this sector.
«For a project with mid-range specifications, which could have cost ₹2,800 per sq ft, it should have risen to ₹3,275 in 2023, based on average inflation, but it has actually increased to ₹3,770,» Mathur said.
But technology has helped mitigate some of the cost escalation.
«The disruption has reduced dependence on imports, with the majority of parts required for office fit-outs now manufactured in India. Tech players like us have brought transparency to the segment, enabling end users to obtain quality work at a reasonable cost,» said Tushar Mittal, founder of OfficeBanao, a platform for office
