India’s 36 million sq ft flexible space segment to grow by 10-15% YoY in three years

On the back of demand for hybrid space, expansion across cities and sustained funding, CBRE expects India’s flexible stock to grow by 0-15 per cent year-on-year (YoY) from the current 36 million sq ft in the next three years. The firm recently released its report The Future is Flex, which highlights emerging trends and future expectations in India’s flexible space segment. 

According to the report, as in Q1,2021, Bengaluru holds a flex stock of 11.6 million sq ft, which is the maximum in the country, followed by Delhi-NCR at 6.6 million sq ft and Hyderabad at 5.7 million sq ft. While these cities along with Mumbai will continue to see further demand, flex demand in cities like Pune and Chennai are also expected to see growth in coming years. In 2020 alone, over 75,000 seats were leased in flex spaces across India. 

 “Businesses are evaluating new working models that keep workplace flexibility at the centre, balancing employee benefits and business profitability,” says Anshuman Magazine, Chairman, India & South-East Asia, Middle East & Africa, CBRE. “These models will 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 employee look forward to normal workdays, with mass vaccination propelling further sectoral growth.”

“We are witnessing an accelerated change in performance, expectations and role of the workplace,” adds Ram Chandnani, Managing Director, Advisory & Transactions Services, India, CBRE. “Firms have been successful in changing their strategies to ensure seamless functioning, while effectively leveraging potential changes in work styles. While for many the work from home culture may continue, the demand for physical workspaces is expected to be driven by 

flex offerings.”