Flexible Workspaces Surge in India's Commercial Real Estate Market

Flexible workspaces have become a substantial driver of office demand in India. Their share in the gross prime workspace leasing has increased to 13% from 6% in 2017. Various industry leaders attribute this growth to changing occupier needs and an end to the work-from-home regime.

Co-working operators are now a significant force in India's office demand, contributing 13% to the gross leasing of prime workspace across eight major cities, up from 6% in 2017, according to a report by Cushman & Wakefield and Table Space.

The joint report, 'From Flex to Managed - Evolution of the Flex Space Industry,' highlighted rapid changes in India's commercial real estate landscape driven by evolving occupier needs. The flexible workspace category has rapidly expanded over the last decade, achieving a significant footprint of 58 million square feet by mid-2024, which makes up nearly 7-8% of prime office inventory.

Industry experts like Ramita Arora of Cushman & Wakefield and Nitish Bhasin of Table Space note a shift towards managed office solutions, fueled by SMEs moving to formal office spaces and a hybrid work model. With flex space absorption projected to hit 20% of all commercial transactions in the next few years, the sector is poised for sustained growth.

(With inputs from agencies.)