Flexible office space providers in India currently manage 53.4 million square feet of workspace, and this figure is expected to surge by 52% to reach 81 million square feet by 2025, driven by heightened corporate demand, according to a report by real estate consultant Vestian. The report, titled ‘Flexing the Workspace – Back to Office,’ unveiled that over 760,000 seats are available across more than 1,000 centers in India, with 50 significant flexible space operators in the market. The top 10 players already command 84% of the total flexible office space inventory.
Shrinivas Rao, CEO of Vestian, commented that the flexible office space sector in India is still in its infancy compared to countries like the US and Europe but has experienced steady growth. He noted that the sector’s growth has been catalyzed by the COVID-19 pandemic.
The report highlighted that the adoption of flexible office spaces in India began to gain momentum in 2015-16 when the market was fragmented and disorganized. However, it has since matured significantly and become more structured. Flexible workspace offerings are now attracting attention from not only startups and SMEs but also large enterprises.
Rao further added that while 2023 may present challenges for businesses due to macroeconomic uncertainties and recession fears, flexible office spaces offer a solution that combines cost-efficiency, flexibility, and advanced technology-infused environments. As companies continue to implement hybrid work models, the demand for flexible office spaces is expected to rise.
Vestian projected that the flexible office sector will account for approximately 25% of total office space absorption by 2025. In 2022, co-working and flex space operators leased a total of 8.4 million square feet of office space. This year, they are expected to lease 10.5 million square feet, followed by 12.8 million square feet in the next year.
Flexible office spaces encompass various options, including dedicated desks, hot desking, co-working spaces, and serviced and managed offices, catering to a range of occupier preferences. Prominent co-working and flex space operators in India include WeWork India, Smartworks, Simpliwork Offices, Awfis, Table Space, Skootr, The Executive Centre, Urban Vault, IndiQube, Incuspaze, 91Springboard, 315Work Avenue, Akasa Coworking, The Office Pass, Avanta India, and BHIVE Workspace, with key office areas such as Whitefield in Bengaluru, Hitec City in Hyderabad, Baner in Pune, Andheri (East) in Mumbai, and DLF Cybercity in Gurugram being favored by both operators and tenants.
