In 2024, the flexible office market in the Asia-Pacific (APAC) region is at a pivotal moment. Like many industries, APAC’s office and commercial real estate (CRE) sectors have experienced significant post-pandemic shifts, with demand for flexible workspaces evolving surprisingly.  

The city-by-city variations highlight a broader trend: the APAC flexible office market is maturing rapidly. This evolution calls for landlords, operators, and investors to adapt to shifting demand patterns and rethink their strategies. Leveraging reliable data and insights is crucial for understanding these dynamics and making informed decisions that align with market needs. 

Instant’s analysis of the “hottest” markets in APAC for 2024—measured by total demand for flexible desks—shows that while established cities remain important players, new markets emerge as growth leaders. This changing landscape underscores the region’s growing role in shaping the future of flexible work. 

Top 10 APAC Cities for Flexible Office Space in 2024 

As businesses across the Asia-Pacific region embrace hybrid work models, the demand for flexible office spaces is surging in key markets. Based on the largest number of flexible desk inquiries, The Instant Group has identified the top 10 cities driving this trend in 2024. 

Here’s the list, ranked by the highest number of requested flex desks: 

1. Sydney, Australia (-11% YoY Demand Change) 

Sydney remains the leader in total demand for flexible office spaces, with more requests for flex desks than any other APAC city. However, the -11% decline in year-over-year (YoY) demand suggests a slowdown, potentially signalling opportunities for emerging markets to gain prominence. 

2. Colombo, Sri Lanka (+7% YoY Demand Change) 

Colombo is steadily gaining ground, with a 7% increase in demand. This growth highlights Sri Lanka’s rising appeal as an affordable, strategic location for businesses in the region. Additionally, the country’s strategic position along key global trade routes bolsters its appeal, particularly for businesses with regional and international operations 

3. Bangalore, India (+107% YoY Demand Change) 

Bangalore is the standout performer in 2024, boasting an astonishing 107% YoY demand increase. Known as India’s Silicon Valley, the city’s booming tech ecosystem and cost-efficient workspace options make it one of the most exciting markets to watch. According to Instant Offices ‘ data, this increase is also driven by a significant increase in larger requirements, with demand for 20+ desks increasing 20% from 2023 to 2024.  

4. Makati, Philippines (+47% YoY Demand Change) 

Makati, the financial hub of the Philippines, has experienced an impressive 47% growth in demand. Its strategic location and high-quality office options draw businesses looking for a foothold in Southeast Asia. 

5. Kuala Lumpur, Malaysia (+78% YoY Demand Change) 

Kuala Lumpur has emerged as a standout performer in 2024, with an impressive 78% year-over-year demand growth—one of the fastest in the APAC region. The Malaysian capital’s rapid ascent reflects its growing appeal as a cost-effective and dynamic business hub, particularly for companies seeking strategic alternatives to more mature markets like Singapore. 

6. Mumbai, India (+28% YoY Demand Change) 

Mumbai, India’s financial capital, has seen a 28% jump in demand. As companies expand their operations and adopt hybrid models, the city’s balance of premium and affordable workspace options drives its resurgence. Also, Mumbai’s robust connectivity, access to a diverse talent pool, and a thriving entrepreneurial ecosystem make it an ideal base for businesses. 

7. Melbourne, Australia (-9% YoY Demand Change) 

Melbourne has seen a decline in demand (-9% YoY), reflecting Australia’s more subdued flexible office market. Despite this, it remains a key player in the region, thanks to its established infrastructure and strong appeal to local businesses. 

8. Hong Kong, China (+11% YoY Demand Change) 

Hong Kong is bouncing back with an 11% increase in demand, highlighting its resilience as a global business hub despite recent challenges. Premium, flexible spaces here continue to attract finance and legal sectors. 

9. Singapore (-31% YoY Demand Change) 

Traditionally a top market, Singapore has seen the steepest decline (-31%). The decrease may indicate saturation or shifting priorities among businesses looking to diversify into less expensive markets. 

10. Seoul, South Korea (+5% YoY Demand Change) 

Seoul rounds out the list with a 5% increase in demand. The city’s growing appeal lies in its blend of innovation and connectivity, making it an attractive choice for tech-driven businesses.  

Emerging Cities to Watch 

Bangalore and Makati are clear frontrunners in terms of demand growth. Bangalore’s 107% increase reflects its rapid rise as a global tech hub, while Makati’s 47% growth demonstrates the increasing appeal of the Philippines for regional expansion. Both cities are poised to challenge traditional powerhouses like Sydney and Singapore in the coming years. 

Established Leaders Slowing Down 

Despite leading in overall demand, cities like Sydney and Singapore are seeing declines. Though still the most requested city for flex desks, Sydney experienced an -11% drop in demand, and Singapore’s -31% decline signals a major shift in business preferences. Companies may be exploring more cost-effective or emerging markets. 

What’s Driving the Shift? 

Several factors are shaping the APAC flexible office market: 

• Affordability: Cities like Bangalore attract companies with lower costs and high-growth environments. 
• Diversification: Businesses are spreading their operations across new locations to reduce risk and tap into untapped talent pools. 
• Tech Hubs Thriving: Cities with strong tech ecosystems, such as Bangalore, Makati, and Seoul, are seeing demand surge. 

Conclusion 

2024 marks a transformative year for APAC’s flexible office market. While established giants like Sydney and Singapore remain critical players, cities like Bangalore and Makati are rising rapidly, offering exciting opportunities for businesses seeking growth and cost efficiency. The region’s diverse mix of established hubs and emerging markets ensures that APAC will remain a focal point for flexible office space in the future.