A new report reveals that over 80% of Indian office occupiers plan to adopt flexible office spaces. Key drivers include cost efficiency, hybrid work models, and enterprise-grade amenities. Flex spaces are increasingly used for core operations, with longer lease commitments expected. Prime locations remain a priority for businesses.
A new report by Colliers, “Flex Spaces: Reshaping the New-Age India Office Market,” highlights the growing popularity of flexible office spaces in India. The survey shows that over 80% of office occupiers plan to expand their portfolios by incorporating flex spaces in the coming years. The increasing need for cost efficiency, adaptability, and hybrid work models drives this surge.
Flex spaces are more cost-effective than traditional office leases, allowing businesses to scale up or down based on current needs and eliminating wasted space. Additionally, modern flex spaces offer enterprise-grade infrastructure and amenities, making them attractive to large corporations. “The rise of hybrid work models has created a demand for flexible work arrangements,” the report explains, underscoring the growing importance of such spaces for distributed workforces.
Interestingly, flex spaces are no longer viewed as temporary solutions. The survey indicates that 40% of businesses, particularly in the technology sector, now use flex spaces for core operations. Multinational corporations (MNCs) are also embracing these spaces, with a projected three to fourfold increase in usage by 2030.
This trend is also reshaping the leasing market. While short-term leases were once the norm, companies are now committing to longer-term agreements for flex spaces. The report projects an average lease commitment period of nearly three years, reflecting the increasing trust in these spaces as permanent office solutions.
Despite flex spaces’ flexibility, location remains a critical factor for businesses. About 45% of companies prioritise expanding in prime locations within major cities. These areas provide access to essential talent, infrastructure, and amenities crucial for business growth.
As the flexible office space market evolves, its future looks bright. The rise of managed offices and hybrid flex centres, catering to coworking and private office needs, will likely drive sustained growth. Flex spaces are becoming indispensable to the modern workplace, with their cost efficiency, adaptability, and ability to support hybrid work models, ensuring their lasting presence in the Indian office landscape.
