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India’s Flexible Space Segment to Grow at 10-15% Annually for the Next 3 Years

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The co-working or flexible space segment in India is likely to grow at the rate of 10-15 percent annually for the next three years, according to a CBRE report.

Currently, the flexible space in the country accounts for 36 million square feet.

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Titled ‘The Future is Flex’, the report said that the prospective growth can be attributed to the hybrid space demand, expansion across cities and sustained funding.

It highlights that as of Q1,2021, Bengaluru holds a flex stock of 11.6 million square feet, the maximum in the country, followed by Delhi-NCR at 6.6 million square feet and Hyderabad at 5.7 million square feet.

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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 the coming years. In 2020 alone, over 75,000 seats were leased in flex spaces across India.

Additionally, with an expanded range of flexible space options, and increased focus on hybrid working models by enterprise clients, tier 2 and 3 markets are also expected to witness an increase in flex demand. It said that Tier 2 activity is expected to be dominated mostly by domestic operators during the next couple of years.

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