+
Flexible Office Space Funding Soars
Real Estate

Flexible Office Space Funding Soars

Since 2017, flexible office space operators in India have attracted USD 820 million in private equity (PE) funding, driven by growing demand from corporates, according to Knight Frank. The real estate consultant highlighted significant fluctuations in PE investments, beginning with a rise from USD 25 million in 2017 to USD 49 million in 2018, peaking at USD 113 million in 2019. Investors like CLSA Capital and Peak XV Partners played a key role during this period. However, the sector saw a sharp decline during the pandemic, with investments falling to USD 11 million in 2020 and USD 6 million in 2021.

The report pointed to a resurgence in 2022, when investments surged to USD 595 million, led by deals involving Hillhouse Capital and Actis. Despite this rebound, funding dropped to USD 13 million by 2023, with a single deal worth USD 8 million in 2024.

Knight Frank also reported that flexible office space operators leased an estimated 52.9 million square feet between 2017 and mid-2024, recording a compound annual growth rate (CAGR) of 22%. Chairman Shishir Baijal emphasized India's dynamic commercial real estate market, with demand for innovative, employee-centric workspaces growing as India maintains its position as the fastest-growing major economy.

Baijal also noted that flexible office operators are setting future trends by adopting environmental, social, and governance (ESG) principles and advanced technology.

Since 2017, flexible office space operators in India have attracted USD 820 million in private equity (PE) funding, driven by growing demand from corporates, according to Knight Frank. The real estate consultant highlighted significant fluctuations in PE investments, beginning with a rise from USD 25 million in 2017 to USD 49 million in 2018, peaking at USD 113 million in 2019. Investors like CLSA Capital and Peak XV Partners played a key role during this period. However, the sector saw a sharp decline during the pandemic, with investments falling to USD 11 million in 2020 and USD 6 million in 2021. The report pointed to a resurgence in 2022, when investments surged to USD 595 million, led by deals involving Hillhouse Capital and Actis. Despite this rebound, funding dropped to USD 13 million by 2023, with a single deal worth USD 8 million in 2024. Knight Frank also reported that flexible office space operators leased an estimated 52.9 million square feet between 2017 and mid-2024, recording a compound annual growth rate (CAGR) of 22%. Chairman Shishir Baijal emphasized India's dynamic commercial real estate market, with demand for innovative, employee-centric workspaces growing as India maintains its position as the fastest-growing major economy. Baijal also noted that flexible office operators are setting future trends by adopting environmental, social, and governance (ESG) principles and advanced technology.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code