Bengaluru leads India’s flexible workspace market, accounting for 31% of the total Grade A flex supply, with 58 million sq ft across top cities. Driven by hybrid work models and high demand from the IT sector, flexible spaces now make up 11-13% of nationwide office space demand, according to Cushman & Wakefield.
Bengaluru has emerged as the top city for flexible workspaces in India, commanding 31% of the country’s total Grade A flexible office space, according to a joint report by Cushman & Wakefield and Table Space. As of June 2024, the total supply of flexible workspaces across India’s top eight cities reached 58 million square feet (msf), making up over 7-8% of India’s total Grade A office supply.
Bengaluru is also the leader in leasing, accounting for 43% of the 4.5 lakh flex workspaces leased between 2021 and mid-2024. The first half of 2024 alone added 5 msf of new flexible workspace supply, marking the highest-ever contribution of flex leasing to overall office space gross leasing volume. “The flex-space sector stands out as one of the fastest-growing segments in commercial real estate,” said Ramita Arora, Managing Director, Bengaluru, and Head-Flex, India, Cushman & Wakefield.
The report noted that flexible workspaces have grown steadily over the last few years, with capacities increasing by 23% in 2022 and 18% in 2023. The trend continues in 2024, reaching nearly 70% of 2023’s total flex space leasing numbers by mid-year, suggesting a potential record-breaking year for the segment.
This expansion has been driven primarily by adopting hybrid work models and managed office solutions (MOS), especially post-2020. The IT sector remains the largest consumer of flexible office spaces, accounting for 40-50% of seat absorption in 2023 and H1 in 2024. Other key industries contributing to the demand include engineering and manufacturing (14-18%), BFSI (9-12%), and professional services (11-12%).
As the demand for curated, flexible offices continues to rise, flexible workspaces now account for 11-13% of the total office space demand across India. With half a million flex seats consumed over the past five years, this sector significantly reshapes the commercial real estate landscape.
The future of flexible workspaces looks bright, with companies increasingly opting for tailor-made office solutions that offer adaptability and cost-effectiveness in a changing work environment. This shift underscores the growing significance of flex spaces in India’s booming commercial real estate market.
Leave a Comment
Your email address will not be published. Required fields are marked with *