Flexi-space set to double by 2027

New Delhi, July 24: Flexible workspace operators' portfolio across seven major cities has jumped nearly three-fold to 53 million square feet in the last five years and is expected to double by 2027 as the players look to expand business to meet rising demand from corporate clients, according to a report by JLL India and Smartworks.

According to the data, the operational flexible workspace stocks have risen to 53 million square feet as of March this year from 18.6 million square feet in 2018 calendar year. The total number of operational flexible desks is 8,39,250.

A joint report of Real estate consultant JLL India and managed office space provider Smartworks has projected that the operational flex stocks would reach 106 million square feet by 2027 calendar year.

“India's coworking or flex sector continues to get closely integrated into the commercial real estate mainstream, becoming key to occupier real estate strategies. The operational flex stock has now risen to 53 million sq ft across the top seven cities. This equates to an overall office stock penetration level of around 4.7 per cent, making it among the fastest-growing flex markets globally,” the report said.

The flexible stock growth at a compounded annual growth rate of 28 per cent since 2018 has been momentous when seen in the light of the reset seen during the pandemic, it added.

“We expect the growth to be more aligned to a steady state. As such, we expect that the operational flex stock is likely to reach around 106 million sq ft, doubling again over the next five years,” the report said.

The share of Bengaluru, Delhi-NCR and Hyderabad in operational flex stock is around 68 per cent.

Neetish Sarda, founder, Smartworks, said the flex sector has been at the forefront of changing the dynamics of the commercial real estate market.

“As employees demand more from their workplaces and occupiers look to revitalise their offices, the flexible officespace sector has emerged as a strong partner,” said real estate consultancy JLL India head of research Samantak Das.

INDIA’S COWORKING or flex sector continues to get closely integrated into the commercial real estate, becoming key to occupier real estate strategies. The flex stock has now risen to 53 million sq ft.