Organisations in Asia Pacific will continue to adjust their hybrid policies to favour in-person attendance as the office sector regains its central role in commercial real estate. Asia Pacific offices have the lowest average fit-out costs for offices at US$ 1,460 per sqm compared to the global average of US$ 1,830 and the highest costing region, North America, at US$3,070, according to JLL (NYSE: JLL)’s recent Global Office Fit-Out Costs Guide 2025.

JLL analysis forecasts that countries in Asia Pacific have the highest proportion of organisations planning to increase fit-out investment. In Asia Pacific, countries such as India and Australia have a greater proportion of organisations planning to increase investment in space design and fit-outs in the next five years (74% and 72% respectively), significantly higher than the global average of 59%.

Expected fit-out investments are driven by numerous macroeconomic factors influencing construction costs, says JLL. In India, while there is a strong construction market and economic growth overall, imported material costs are steadily increasing due to the Rupee declining against the US Dollar due in part to US tariffs. In Australia, while inflation has stabilised in the last 12 months, worker shortages and wage growth in competitive markets have driven up labour costs in the construction sector.

“While Asia Pacific continues to offer competitive fit-out costs compared to other regions, the increasing focus on technology integration and hybrid work models is driving investment in high-quality workspaces,” said Martin Hinge, Executive Managing Director, Projects & Development Services, Asia Pacific. “Furthermore, we see this theme gaining momentum, reflected in the growing demand for sustainable solutions and adaptable office layouts across the region."

Builders’ Works and Security, IT & AV works among top cost drivers in Asia Pacific.

To benchmark costs across regions, JLL priced a standardised project, a contemporary office building in a Central Business District (CBD), with specifications benchmarked. Japan and Singapore made up the Asia Pacific countries that have the highest fit-out costs in the world.

Asia Pacific spends more on AV and technology compared to other regions, reflecting the growing emphasis on technology to support efficiencies and hybrid working practices in the region. Builders’ Works follows the global trend of accounting for the largest component of fit-out costs in all regions, except for Latin America.

Sustainability to take centre stage in fit-out considerations.

Continued demand for Grade A office space, combined with a lack of supply, is shifting the focus towards existing office buildings and their long-term value for occupiers and building owners alike. 66% of organisations globally plan to increase investment in sustainability performance in the next five years. In India, that number stands at 77%. While a major proportion of sustainable fit out costs are attributed to mechanical and electrical services (M&E services), with Asia Pacific reporting a 26% proportion of costs, such upfront costs can generate the most long-term cost efficiencies, with JLL research showing that investing in M&E upgrades can save between 10-40% on operational energy costs depending on the level of investment or upgrade.

Cautious optimism for the offices sector will be the trend for 2025.

With the supply gap for Grade A offices expected to continue to grow, there will be a greater focus on lease renewals and upgrading existing tenancies and buildings as an alternative. JLL also sees scope for more retrofit projects across the region as supply tightens. Amid an uncertain economic and geopolitical environment, early planning for leases and decisive investment in existing buildings will help landlords and occupiers to factor in and manage associated costs.  

JLL’s Global Office Fit-Out Costs Guide analysed data from 68 cities in 40 countries around the globe, and uncovers key findings across global cost variations, cost drivers, sustainable fit out demand and market sentiment.