Key Points

"It is expected to reach 85 MSF by year-end and surpass 100 MSF by 2026," Cushman and Wakefield said in its report on Friday.

This growth has been matched by surging demand.

According to the report, flex demand has risen nearly sixfold since 2020, fuelled by occupiers prioritising shorter commitments, managed solutions, and speed-to-market strategies.

In 2024 alone, flexible space accounted for 15 per cent of total new office leasing, confirming its mainstream adoption.

Operator expansion has also accelerated sharply.

Over the past three years (2022-2024), flexible workspace providers leased 33.5 MSF, equivalent to more than 5 lakh seats.

Annual operator take-up has tripled in just five years, from 4.3 MSF in 2020 to 15.4 MSF in 2024, firmly establishing flexible workspace as a core workplace solution rather than an alternate option, the report stated.

Flexibility and agility are driving India's flex space story, and this trend is set to accelerate as firms actively seek business-ready offices to rapidly scale or adjust headcount as needed.

"The bulk of this demand is coming from international enterprises, which accounted for 72 per cent of flex seat absorption in 2024, while start-ups took up 28 per cent," the report noted.

The significant influx of Global Capability Centres and other new companies entering India is accelerating this shift, further solidifying flexible workspaces as the preferred model for companies seeking speed, resilience, and growth in a dynamic market.

The managed office/enterprise model now dominates, accounting for 70-80 per cent of demand post-COVID, well ahead of traditional coworking.

According to the report, the bulk of this stock remains concentrated in the top 8 cities, with Bengaluru leading the charge, holding 30 per cent of the national flex inventory, followed by Delhi-NCR, Pune, and Hyderabad.

Bengaluru also leads the demand, accounting for an average of one-third of annual enterprise transactions in the country.

Beyond these leading Metros, occupiers are increasingly expanding to Tier-II cities such as Chandigarh, Jaipur, Kochi, Trivandrum, Coimbatore, Visakhapatnam, and Bhubaneswar to tap into new talent pools and capitalise on lower operating costs.

India stands out for the strength and maturity of its flexible workspace market.

"Scoring a perfect 100 on Cushman and Wakefield's maturity index, India has outpaced its global peers with well-established office markets, including the United Kingdom at 98 per cent, France at 97 per cent, the United States at 81 per cent, and both Japan and Singapore at 77 per cent respectively," the report highlighted.

- IANS