As the work-from-home trend wanes, flexible office spaces are becoming preferred for employees and employers. For many, like Nira C., a software company employee in Bengaluru, working closer to home is a game-changer. Nira’s daily commute of up to three hours was challenging, especially with a young child at home. “It had come to a point when I was thinking I’d have to quit but now, my office is close enough to nip out in case of anything urgent at home,” she says.

Coworking and managed spaces are thriving, offering convenience and flexibility for employees while providing cost-effective, asset-light models for employers. This surge in demand is evident in both large metros and Tier-2 cities as companies enforce stricter return-to-office policies. Significant players like WeWork India, 91Springboard, Incuspaze, and Dextrus report increasing interest from large enterprises, IT/ITES sectors, Fortune 500 companies, startups, and solopreneurs.

Sanjay Chaudhary, founder and CEO of Incuspaze, highlights the growing trend in Tier-2 cities. “With the declining trend of work from home, flexible office spaces are fast catching up owing to the rising trend of satellite and back-end offices,” he says. “Additionally, as companies aim to reduce costs, maintain proximity to their staff, and retain valuable employees by offering flexible work arrangements, the need for flexible spaces in India is increasing.” Incuspaze has experienced a 15% rise in queries in the first quarter of 2024 compared to the previous year.

Flexible office spaces allow businesses to scale operations quickly. Unlike traditional offices, which often involve high rents and long-term leases, flex spaces allow businesses to rent only the space they need for a specific period, reducing upfront costs and long-term commitments.

Anshu Sarin, CEO of 91Springboard, notes three distinct customer categories: freelancers and early startups, mid-stage startups and SMEs, and large companies, both MNCs and Indian corporates. “The industries falling under the latter are not just the IT/ITES companies but BFSI, manufacturing, and global capability centres. Companies from some of these categories have done scaling of their seats with us as per requirement and lease renewals,” she says.

Robin Chhabra, founder and CEO of Dextrus, which caters to the premium market, reports over 90% occupancy rates and notes diverse sectoral interest post-COVID. “We are seeing very large demand for companies wanting to come back to the office. Work from home is on the wane, but the main reason this space is booming is because of the convenience,” he says. Dextrus’s clients span warehousing, data centres, banking, education, private equity, pharma, and hotels.

WeWork India has seen a 20% growth in its member base over the past year, with a significant portion comprising tech companies. “Over 53% of our present member base comprises tech companies such as Cimpress, Equinix, Fynd, and 3M, among others, and we expect it to grow further in the near future,” says Karan Virwani, CEO of WeWork India.

In conclusion, the demand for flexible office spaces is skyrocketing as the work-from-home trend diminishes. These spaces offer significant convenience, cost-effectiveness, and scalability benefits, making them an attractive option for a wide range of industries and company sizes.