Flexible office space stock to grow 10-15% annually over next 3 years
India's flexible office space segment has a total stock of 36 million sq ft currently and is likely to grow 10-15 per cent annually over the next three years on rising demand from corporates, according to CBRE.
Property consultant CBRE South Asia Pvt Ltd has released its report -- 'The Future is Flex' that highlights emerging trends and future expectations in India's flexible space segment.
CBRE expects India's flexible stock to grow by 10-15 per cent (year-on-year) from the current 36 million sq ft in the next three years driven by hybrid space demand, expansion across cities and sustained funding.
As of Q1, 2021 calendar year, Bengaluru holds a stock of 11.6 million sq ft, the maximum in the country, followed by Delhi-NCR at 6.6 million sq ft and Hyderabad at 5.7 million sq ft.
Apart from Delhi-NCR, Mumbai and Bengaluru, the demand for flexible workspace 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 flexible spaces across India.
"The pandemic influenced the way businesses function, and their overall strategies. Businesses are evaluating new working models that keep workplace flexibility at the centre, balancing employee benefits and business profitability," said Anshuman Magazine, Chairman, India & South-East Asia, Middle East & Africa, CBRE.
He said these models would not only ensure flexible working, but also ensure employee safety once offices resume normal operations.
"The demand for physical office spaces will continue to rise as employees look forward to normal work days; with mass vaccination propelling further sectoral growth," he added.
Ram Chandnani, Managing Director, Advisory & Transactions Services, India said, "we are witnessing an accelerated change in performance, expectations, and role of the workplace. Firms have been successful in changing their strategies to ensure seamless functioning, while effectively leveraging potential changes in work styles." "While for many the work from home culture may continue, the demand for physical workspaces is expected to be driven by flex offerings," Chandnani said.
The report highlighted that Tier 2 and 3 markets are also expected to witness an increase in demand for flexible space.