Flexible office space to grow 10-15% y-o-y

THE DEMAND FOR FLEXIBLE OFFICE SPACE IS EXPECTED TO GROW IN CITIES LIKE PUNE AND CHENNAI ALSO IN COMING YEARS

NEW DELHI: India’s flexible office space segment has a total stock of 36 million sq. ft currently and is likely to grow 10-15% annually over the next three years on rising demand from corporates, according to CBRE.

Property consultant CBRE South Asia Pvt. Ltd has released its report—‘the Future is Flex’ that highlights emerging trends and future expectations in India’s flexible space segment.

CBRE expects India’s flexible stock to grow by 10-15% (yearon-year) from the current 36 million sq. ft in the next three years driven by hybrid space demand, expansion across cities and sustained funding.

As of Q1, 2021 calendar year, Bengaluru holds a stock of 11.6 million sq. ft, the maximum in the country, followed by Delhincr at 6.6 million sq. ft and Hyderabad at 5.7 million sq. ft.

Apart from Delhi-ncr, Mumbai and Bengaluru, the demand for flexible workspace in cities like Pune and Chennai are also expected to see growth in the coming years.

In 2020 alone, over 75,000 seats were leased in flexible spaces across India.

“The pandemic influenced the way businesses function, and their overall strategies. Businesses are evaluating new working models that keep workplace flexibility at the centre, balancing employee benefits and business profitability,” said Anshuman Magazine, Chairman, India & South-east Asia, Middle East & Africa, CBRE.

He said these models would not only ensure flexible working, but also ensure employee safety once offices resume normal operations.

“The demand for physical office spaces will continue to rise as employees look forward to normal work days; with mass vaccination propelling further sectoral growth,” he added.