Flex space demand on the rise as hybrid work model finds footing: Colliers
- The share of flex spaces in occupiers' overall portfolio in India is estimated to have risen to around 10-12% in 2023
- As of Q1 2023, the
flex spacepenetration in India is reported to be at 6.5%. Tech companiesoccupy 50% of total flex space in India.
AdvertisementIn an evolving global workplace, occupiers in Asia-Pacific (APAC) are struggling with the challenges posed by the
However, despite the widespread challenges faced by occupiers globally, the adoption of flex spaces in India has been rapid. This can be attributed to the attractiveness of flexibility, agility, and cost-effectiveness that flex spaces offer.
According to industry experts, flex spaces are increasingly becoming an essential component of occupiers' portfolios in India. The share of flex spaces in occupiers' overall portfolio is estimated to have risen to around 10-12% in 2023, up from 5-8% before the pandemic in 2019, based on interactions with industry experts.
Says Peush Jain, Managing Director, Office Services, India, “Flex spaces have emerged as a core strategy for occupiers to adopt a decentralized
As of Q1 2023, the flex space penetration in India (or the proportion of grade A flex space stock to grade A office stock) is reported to be at 6.5%. Flex spaces have offered companies the necessary agility to rapidly scale their operations, allowing businesses to effectively adapt to changing circumstances.
Tech drives adoption
In India, the demand for flex spaces has been significantly driven by technology occupiers in the top cities with tech companies occupying 50% of total flex space in India.
Additionally, sectors such as engineering and manufacturing and BFSI (banking, financial services, and insurance) are actively adopting hybrid working models through flex spaces. In larger markets like Mumbai and Bengaluru, the demand for flex space from BFSI and engineering occupiers is nearly equal to that of technology occupiers. Looking ahead, the demand from technology occupiers is expected to remain strong in the next two years, driven by a robust recovery and hiring plans as businesses continue to prioritize cost rationalization.
Hybrid, the way forward
Occupiers are reevaluating their office footprint to determine the ideal balance for their employees, favoring a
AdvertisementThe hybrid model has reset workplace expectations, allowing employees to choose where they work. Distributed workspace strategies are increasingly popular, with companies opting for multiple satellite offices instead of a single headquarters. This has driven demand for flex spaces in peripheral and non-metro cities, particularly among technology, consulting, and e-commerce firms.
Popular on BI
- MrBeast called out TikTok for allowing a deepfake version of him hawking $2 iPhones to run wild on the app: 'This is a serious problem'
- How an OnlyFans creator earned $60,000 from a 'marathon' livestream
- TikTok's strategy for US dominance is straight out of Amazon's playbook — but creators are the fuel for its flywheel
- Travel Boom: India spends 2X of pre-pandemic level on Airbnb with Goa leading the charge
- Swiggy disburses over Rs 450 cr in loans to 8000 restaurant owners
- Hyundai Motor India says all its vehicles to come with 6 airbags
- Earthquake jolts Delhi and other parts of northern India
- World Bank pegs India's FY24 GDP growth at 6.3% as global headwinds emerge