India's Flex Office Sector Thrives Amid Hybrid Work Challenges
Real Estate

India's Flex Office Sector Thrives Amid Hybrid Work Challenges

India's flexible office sector is expected to experience further growth, with occupiers quickly embracing flex spaces, attracted by their flexibility, agility, and cost-effectiveness, even as occupiers in the Asia Pacific region grapple with the complexities of the hybrid work model, which remains inconsistent across markets and industries.

In India, flexible spaces are becoming an integral part of occupiers' portfolios, and their share is projected to increase to 10-12% in 2023, up from 5-8% before the Covid-19 pandemic in 2019, according to industry experts.

"The APAC region is undergoing a significant transformation in the way workspaces are perceived and utilised," said Sam Harvey-Jones, Chief Operating Officer at Colliers. "While challenges persist, this period of change presents unprecedented opportunities to reimagine the role of space and explore new approaches that cater to evolving employee needs. The research finds APAC occupiers are shifting from an 'inward' business view of what is important in an office or location to an 'external' view of what locations provide their employees with in terms of culture, lifestyle, and well-being."

According to Colliers, companies across the Asia Pacific region face the dilemma of striking a balance between providing employees with desired flexibility and realigning their portfolios for the next phase of workplace evolution. As a result, many businesses are delaying decisions on office space acquisition and investment, as stated in a Colliers report.

"India is in line with the rest of the Asia Pacific region, with 10-12% of occupier portfolios utilizing flex space," said Mike Davis, Managing Director of Occupier Services, Asia Pacific, at Colliers. "Singapore, India, and Australia are the most prominent adopters of flex space within the Asia Pacific. Additionally, adopting technology solutions such as digital tools and dashboards is crucial for addressing the challenges posed by the hybrid workforce."

The report mentioned that the lack of clarity and macroeconomic uncertainty are presenting challenges for businesses in projecting their space requirements.

"Sales and marketing organizations have been the most enthusiastic adopters of flex space in their portfolios, with the tech sector closely following. However, the tech sector is rapidly expanding, especially in India. Tech companies typically require 'dedicated' flex space due to their IT requirements," explained Davis.

In the first quarter of 2023, India's flex space penetration was 6.5% and continued to grow, driven by occupiers' rapid adoption of hybrid and decentralized work strategies in an effort to create modern workspaces at an optimal cost. Other markets in the APAC region have experienced slower growth, with flex space penetration hovering around 2-4%.

"Flex spaces have emerged as a fundamental strategy for occupiers to embrace a decentralized workspace model, offering a promising alternative to the traditional paradigm," said Peush Jain, Managing Director of Office Services, India, at Colliers.

Also Read
AISATS signs concessionaire agreement for cargo hub at Noida airport
India considers slashing import taxes on solar panels

India's flexible office sector is expected to experience further growth, with occupiers quickly embracing flex spaces, attracted by their flexibility, agility, and cost-effectiveness, even as occupiers in the Asia Pacific region grapple with the complexities of the hybrid work model, which remains inconsistent across markets and industries. In India, flexible spaces are becoming an integral part of occupiers' portfolios, and their share is projected to increase to 10-12% in 2023, up from 5-8% before the Covid-19 pandemic in 2019, according to industry experts. The APAC region is undergoing a significant transformation in the way workspaces are perceived and utilised, said Sam Harvey-Jones, Chief Operating Officer at Colliers. While challenges persist, this period of change presents unprecedented opportunities to reimagine the role of space and explore new approaches that cater to evolving employee needs. The research finds APAC occupiers are shifting from an 'inward' business view of what is important in an office or location to an 'external' view of what locations provide their employees with in terms of culture, lifestyle, and well-being. According to Colliers, companies across the Asia Pacific region face the dilemma of striking a balance between providing employees with desired flexibility and realigning their portfolios for the next phase of workplace evolution. As a result, many businesses are delaying decisions on office space acquisition and investment, as stated in a Colliers report. India is in line with the rest of the Asia Pacific region, with 10-12% of occupier portfolios utilizing flex space, said Mike Davis, Managing Director of Occupier Services, Asia Pacific, at Colliers. Singapore, India, and Australia are the most prominent adopters of flex space within the Asia Pacific. Additionally, adopting technology solutions such as digital tools and dashboards is crucial for addressing the challenges posed by the hybrid workforce. The report mentioned that the lack of clarity and macroeconomic uncertainty are presenting challenges for businesses in projecting their space requirements. Sales and marketing organizations have been the most enthusiastic adopters of flex space in their portfolios, with the tech sector closely following. However, the tech sector is rapidly expanding, especially in India. Tech companies typically require 'dedicated' flex space due to their IT requirements, explained Davis. In the first quarter of 2023, India's flex space penetration was 6.5% and continued to grow, driven by occupiers' rapid adoption of hybrid and decentralized work strategies in an effort to create modern workspaces at an optimal cost. Other markets in the APAC region have experienced slower growth, with flex space penetration hovering around 2-4%. Flex spaces have emerged as a fundamental strategy for occupiers to embrace a decentralized workspace model, offering a promising alternative to the traditional paradigm, said Peush Jain, Managing Director of Office Services, India, at Colliers. Also Read AISATS signs concessionaire agreement for cargo hub at Noida airport India considers slashing import taxes on solar panels

Next Story
Infrastructure Urban

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Next Story
Real Estate

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Next Story
Infrastructure Transport

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?