India’s flexible office spaces hit a record 2.6 million sq ft leased in Q2 2024, reflecting strong demand despite WeWork’s exit. Mumbai led with a 119% increase. Overall, office leasing rose 19% in H1 2024, with Colliers forecasting continued growth in the sector driven by economic resilience and quality demand.
According to a report by Colliers India, India’s flexible office spaces achieved their highest-ever quarterly leasing in April-June 2024, with 2.6 million square feet leased.
The second quarter of 2024 marked a significant milestone for flexible (flex) office spaces in India, with a record 2.6 million square feet leased. Vimal Nadar, Senior Director and Head of Research at Colliers India, remarked, “Flex space activity across the major cities continues to grow from strength to strength.”
This surge comes amid WeWork Global’s decision to sell its stake in the India unit and exit the country. Despite this, the outlook for flex operators remains optimistic. “Flex operators have already leased about 4.4 million square feet of office space in H1 2024, underscoring the occupiers’ continued preference for flex spaces,” Nadar noted. This trend reflects the modern business environment’s need for agility and adaptability.
Overall office space demand in India increased by 8% in the April-June quarter, driven primarily by Mumbai. The city saw office leasing jump 119% to 3.5 million square feet, up from 1.6 million square feet in the same quarter last year. This spike is attributed to the strong demand for newly completed office supplies during the quarter.
Following Mumbai, Hyderabad experienced a 73% increase in office leasing to 2.6 million square feet, and Bengaluru saw a 41% rise to 4.8 million square feet. In the first half of 2024, nationwide office leasing rose 19% to 29.4 million square feet from 24.8 million square feet.
Arpit Mehrotra, Managing Director of Office Services, India, at Collier’s, commented, “The demand for quality office spaces continues to surge, reflecting the confidence of occupiers and investors alike. Anticipated easing of global financial headwinds and continued resilience in the domestic economy augurs well for sustained growth in India’s office market.”
Colliers predicts strong performance in the first half of the year will help office space demand “comfortably” surpass 50 million square feet for the third consecutive year in 2024. The office sector saw a record leasing of 58.2 million square feet in 2023, setting a high benchmark for the current year.
In conclusion, the robust leasing activity in flexible office spaces highlights a growing trend towards adaptable work environments, driven by the evolving needs of modern businesses and sustained economic confidence.
