Fit-out cost of office space rises by 8pc annually on increase in raw material cost: Report
The fit-out cost office space has risen by 8 per cent in the last one year mainly due to rise in prices of raw materials and labour shortages, with Mumbai being the most expensive, according to JLL India. According to JLL's Asia Pacific Fit-Out Cost Guide 2021/2022, the average fit-out cost per square meter now ranging from USD 814 (Rs 61,050) in Mumbai to USD 669 (Rs 50,175) in Ahmedabad.
The factors behind the price increases in most markets are due to direct implications of the pandemic, such as supply chain disruptions, labour shortages, material availability and the rising cost of raw materials, JLL India said in a statement.
Mumbai is the most expensive city to fit-out offices having maximum average fit-out office cost of Rs 61,050 per square meter, followed by Kolkata and Delhi with average fit-out office cost of Rs 56,625 and Rs 56,325 per square meter, respectively.
The fit out cost in Chennai stands at Rs 54,825 per square meter, Hyderabad at Rs 53,850 per square meter, Pune Rs 52,425 per square meter, Bengaluru Rs 51,825 per square meter and Ahmedabad Rs 50,175 per square meter.
MV Harish, Executive Managing Director, Project Development Services, JLL India, said: ''As most organizations open their offices for re-entry, we are seeing a significant jump in pricing for office fit-outs.'' ''Material availability and disruption in the supply chain are predicted to be the biggest cost drivers for 2022. Increased competition and aggressive pricing of margins in cities such as Pune, where contractors are chasing reduced work, may offset some of these price hikes,'' he said.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)