Fit-outs now key revenue engine for flexi offices

Office fit out has emerged as a new business stream for flexible work space operators, with the majority of them generating significant revenue from the segment.

India recorded a steady 3% increase in fit-out cost across top eight cities in the first half of 2025 but remained one of the most cost-effective office fit-out destinations in the Asia-Pacific, according to Cushman& Wakefield, making it an attractive market for businesses expanding their workplaces.

With gross leasing of 42 million square feet during this period, the sector is firmly on track to surpass 90 million sq ft of leasing activity in a year for the first time.

“The growing demand for customised work environments has transformed fit-outs from an ancillary service into a major business stream for managed workspace operators. Enterprises today are looking for partners who can deliver end-to-end workspace solutions with speed, quality and scale,” said Amit Ramani, chairman and managing director, Awfis Space Solutions Ltd.

The company has created a Design & Build vertical to offer the fit out service.

Global capability centres, which account for nearly 40% of office leasing in India, are expected to reach 2,400 centres by 2030 from 1700 currently.

Awfis Space Solutions said that its fit-out business has generated revenue of Rs 58 crore, with a healthy pipeline.

“The growth in gross leasing is directly translating into stronger demand for office fit-outs. Fit-outs have evolved from being a peripheral offering to becoming a core business stream for us — contributing significantly to revenues while placing equal responsibility on designing and building sustainable office interiors,” said Mohit Gambhir, co-founder and executive director at Carbon Guardians, a firm specialising in managed offices.

India’s position as one of the most cost-effective fit-out destinations in APAC makes it a compelling choice for global and domestic occupiers looking to scale efficiently.

“At EFC India, our integrated real estate-as-a-service model, spanning co-working, enterprise solutions and turnkey fit-outs, positions us to deliver sustainable, agile and design-led workplaces across both metros and fast-growing tier-2 and tier-3 hubs,” said Umesh Sahai, managing director, EFC (I) Limited.

The company recently secured fit-out contracts worth Rs 57 crore. It was also recently awarded two Passport Seva Kendra projects in Hyderabad.

ICRA projects flexible office supply to increase to 125 million square feet by 2027 from about 80 million sq ft in 2024.

Recently, tech-enabled workspace consultancy firm Altre started its design and build tech platform, with Anurag Tyagi, who has worked with multinationals such as Morgan Stanley, IQVIA, Table Space, Yes Bank and ICICI Bank, joining as the CEO.

In 2024, Mumbai was the most expensive market in the country for office fit-outs, at $73 per sq ft, followed by Delhi ($69 per sq ft), according to Cushman & Wakefield. Among the other top eight cities, Bengaluru was next, at $67 per sq ft, while the cost of office fit out in Ahmedabad, Chennai, Hyderabad, Kolkata and Pune stood at $65 per sq ft.