Dissipated o ce spaces reshape post-COVID work environments
The rise in the hybrid work models, capital intelligence, the need for exibility in leases, and a shift in work culture have fuelled transformation towards exible spaces; enhanced public infrastructure is another factor that has contributed to the increas
n the wake of the COVID-19 pandemic, the oce space landscape in India has seen a signicant transformation. The shift has impacted how ofces operate. It has sparked innovative ideas in modern oce space designs, and pushed organisations to rethink traditional oce setups and shift to more agile and dynamic work environments.
Among various changes, a key trend post-COVID has been the surge in exible oce arrangements, with larger oce spaces being fragmented into smaller spaces. The trend has emerged as a mainstay of modern work culture, leading to diverse working styles and has introduced exibility into the oce real estate market.
The rise of hybrid work models, capital intelligence, demand for exibility in leases, and a shift in work culture have all fuelled the transition towards exible spaces. From start-ups to small, medium-sized enterprises (SMEs) and large corporations, the demand for exible strategies has grown.
According to a recent report by the CBRE India Research on India’s Oce & Flex Outlook 2024, India
Iremains the fastest-growing exible oce market in the world with a total stock of about 68 million sq. ft. The report also shows that Tier-II cities are emerging as the next frontier for exible spaces as these cities strive to meet the evolving needs of business.
The report, which surveyed the top nine cities in India shows a consistent increase in the leasing demand from exible operators and the share of exible spaces in overall leasing between 2018 and 2023, albeit with minor dips in 2020 and 2021.
Tra c fuels trend
Sanjay Chugh, City Head and Director of Anarock Property Consultants Pvt. Ltd., says that an important element fuelling the demand for exible oce spaces in India post-COVID is the employees’ growing frustration with worsening trac congestion.
Urban hubs in India, particularly Mumbai, Delhi, and Bangalore, are notorious for their trac jams, resulting in considerable time wastage for commuters. The daily commute to the oce has become a major source of stress and ineciency for employees, with some spending up to two hours or more navigating through congested roads and crowded public transport systems. This prolonged commute not only adds to the physical and mental strain of individuals but also impacts productivity and work-life balance.
Mr. Chugh notes that the rise of remotes and hybrid work culture has contributed to the rise in exible oce spaces, with nearly 70% of the companies adopting hybrid work models that allow individuals to forgo the drudgery of daily commuting.
Better infrastructure
Meanwhile, enhanced public infrastructure is another factor that has contributed to the increase in exible oce spaces. Areas which were once considered underdeveloped, have now transformed into bustling hubs with new malls and amenities. This transformation, Mr. Chugh says, has reduced the need for long commutes to central areas leading to the rise of coworking spaces in more accessible locations.
He claims that the shift towards exible leasing models has further accelerated the widespread adoption of co-working spaces. “The increased popularity of coworking spaces, previously known as business centres, has transformed the atmosphere of shared working spaces from formal to lively and colourful, catering especially to the growing generation-Z workforce”. He adds, “These spaces, apart from being less formal, also oer an opportunity for networking and collaboration among diverse businesses and professionals sharing the same workspaces.”
According to a report on New Age Flex Workspace by myHQ by Anarock, funding in the co-working sector has been promising, with a 3.3 times inux of funding post-COVID era in comparison to the pre-COVID period (₹1,400 crore to ₹4,600 crore). Additionally, three out of four people believe that demand for coworking spaces will be better than demand for large oce spaces by 2030.
Cost optimisation
Flexible oce arrangements, such as co-working spaces, also have the advantage of allowing businesses to optimise costs by paying for space and services based on actual usage. This exibility allows businesses to scale up or down more easily based on their changing needs, without being locked into longterm contracts that may not align with their evolving requirements.
“Even though the costs to the clients are similar in leasing traditional oce spaces and co-working spaces, the dierence comes in huge upfront capital investment required for traditional oce space for interiors,” says Utkarsh Kawatra, CEO, myHQ by Anarock.
Mr. Chugh says, looking ahead, the future of oce spaces in India is likely to be characterised by continued innovation, exibility, and adaptability. As organisations embrace remote and hybrid work models, the demand for exible oces is expected to grow further. This trend presents opportunities for real estate developers, operators, and businesses to create innovative workspace solutions that meet evolving needs of the workforce.
The di erence between traditional o ce space and coworking space is the huge upfront capital investment required for traditional o ce space UTKARSH KAWATRA CEO, MYHQ BY ANAROCK