The interior fit-out segment is poised for significant expansion, driven by factors such as urbanization, modernization demands, and the evolving needs of a post-pandemic workforce seeking more adaptable and health-focused work environments. Companies are increasingly prioritizing higher specifications in office fit-outs to enhance employee engagement and wellbeing.The recent survey conducted by Furniture & Design Technology magazine among 70 odd furniture and fitout making firms and 135 architect & design firms concluded to positive news for quality and premium grade prelaminated board makers. After 2020-2021, the office space occupancy was badly hit throwing office furniture makers focus towards government projects. Lately since the companies have once again called back the employees back to office desk, its impact is visible. Now the office occupiers are placing greater emphasis on high quality offices and interiors compared to a decade ago. And the companies too are focusing on creating high quality working places with the aim of attracting and retaining talent by offering superior work environments.
This change is resulting in to growing demand for high quality and better-designed prelaminated boards and surfaces compared to what it was earlier. The facts indicate a growth of 30% rise in quality prelam particle boards consumption compared to data’s during 2020. The demand for better designed spaces and wall cabinets with modern tables and hardware fittings have risen significantly explained almost 80% of furniture makers. The survey was conducted in Mumbai-CBD, Bangalore, Delhi-NCR and Pune. Compared to home improvement market, the office improvement market has been always highly cost sensitive but lately it is changing and accepting to high quality designs and interiors and fitouts.
Fit-out cost inflation remained relatively stable at 4-6% during 2015-20 but has since seen significant volatility due to the COVID-19 outbreak. The average office space cost used to be in tune to Rs 3000 psf which is now being accepted up to Rs 5000 psf reveals PMC groups working in this space. The reports similar to our survey are showing significant change in office fit-out trends, with a growing preference for mid-grade and high-grade spaces. However, the technology and communication has helped mitigate some of the cost escalation, the main impact is coming from reduced dependence on imports. With the majority of boards, hardware and partition panels now manufactured in India the demand for quality office space is growing which is helping the particle board and prelam product demand in key office holding metros.
The Prelam Particle board industry is crossing Rs. 10000 crore annual size with significant jump in asking for premium grade surfacing thus offering a hope for quality particle board producing companies who are conscious for health and touch feel of the furniture & interiors.