India’s flex workspace market likely to double to 180 mn sq ft by 2030

New Delhi, Oct 28 (IANS) India’s flexible workspace market is likely to see rapid expansion, with the country’s top seven office market stocks expected to double from 90 million square feet in 2026 to 170-180 million square feet by 2030, a report said on Wednesday.

The report from Colliers and Confederation of Indian Industry (CII) said the growth will be driven by rising enterprise demand, growing Global Capability Center (GCC) participation and increasing integration of flex spaces in occupiers’ real estate portfolio.

Flex space concentration– share of flex stock in overall Grade A office stock– is projected to rise from nearly 10 per cent currently to about 15 per cent by 2030. Flex operators are likely to lease about 18 million sq ft of Grade A office space in 2026, with Bengaluru, Delhi NCR & Hyderabad contributing 3-4 million square feet each.

“Flex space market is now being shaped by large occupiers seeking agility, scalability, employee wellness and faster speed-to-market. Strong flex space uptake in recent years and higher enterprise adoption reiterate sustained demand for managed & flexible workspaces,” the report said.

Secondary Business Districts (SBDs) across the top 7 cities have driven over 55 per cent of overall flex space leasing in the last five to six years, led by improved accessibility, rental arbitrage and sustained occupier demand.

Leasing by flex space could account for nearly one-third of the overall Grade A leasing across top 7 markets in the country by 2030, up from around 20-25 per cent share currently.

“The growing participation of GCCs and expansion into emerging cities can also support more geographically balanced economic growth,” said Ashwinder R. Singh Chairman, CII Committee on Real Estate (NR) and Vice Chairman, BCD Group

“Scale, institutional maturity, enterprise adoption, access to public equity and workplace innovation will define the next growth phase of India’s flex market. Flex spaces are projected to occupy 20-25 per cent of occupiers’ real estate portfolio in the next 3-4 years, up from current estimates of 15-20 per cent,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.

Enterprise clients have emerged as the primary drivers of India’s flex space market, accounting for 75-85 per cent of the total flex space demand. Annual enterprise seat uptake has increased at a CAGR of 33 per cent in the last 5-6 years, from around 55,000 seats in 2021 to an estimated 230,000 seats in 2026.

—IANS

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