Summary:

Flex space absorption by domestic and foreign enterprises is projected to peak in 2024, with 106,554 seats leased in the first half of the year, up from 155,000 for the entire year in 2023. Since 2021, the sector has grown at a CAGR of 35%. According to Cushman & Wakefield and Table Space, flexible workspaces in the top eight cities will total 58 million square feet (MSF) by the first half of 2024, accounting for 7-8% of India’s Grade A office supply. The first half of 2024 alone saw an increase of about 5 million square feet, continuing the growth trend of previous years.

Flexible workplaces are becoming increasingly popular in Tier II and III cities due to workforce decentralization and a focus on work-life balance, representing 11-13% of total office space demand nationwide. Managed Office Solutions (MOS) are driving growth by offering customized services and shorter leases. According to Mr. Nitish Bhasin, Chief Sales Officer at Table Space, the number of active flex space operators grew to 300 between 2021 and mid-2024, with the top 5% controlling more than half of the Grade A flex stock and primarily offering MOS.

Source: IBEF 

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