Report indicates that as of Q1 2021, Bengaluru holds the highest amount in the country, followed by Delhi-NCR and Hyderbad
According to a report by CBRE, India’s flexible space supply is predicted to increase by 10-15 percent year-on-year from the current 36 million square feet in the upcoming three years, said ET Realty.com.
As of Q1 2021, the report notes that Bengaluru carries a flex stock of 11.6 million square feet, the highest in the country. Following at 6.6 million square feet is Delhi-NCR, and Hyderbad at 5.7 million square feet.
As these cities, as well as Mumbai, will proceed to see additional demand, flex demand in cities like Pune and Chennai also anticipate seeing growth in the coming years.
In 2020, more than 75,000 seats were leased in flex spaces across India.
Anshuman Magazine, chairman, India & South-East Asia, Middle East & Africa, CBRE, said, “The pandemic influenced the way businesses function and their overall strategies. Businesses are evaluating new working models that keep workplace flexibility at the centre, balancing employee benefits and business profitability. These models will not only ensure flexible working, but also ensure employee safety once offices resume normal operations. The demand for physical office spaces will continue to rise as employees look forward to normal workdays; with mass vaccination propelling further sectoral growth.”
Landlords may improve product offering via ‘strategic’ partnerships with operators or establishing their own brands to tap into the demand for flex spaces in their portfolio.
Tier two and three markets are also expected to see an increase in flex demand. Domestic operators are anticipated to dominate Tier two activity during the next couple of years.
Moreover, operators may create higher flexibility and innovation solutions/deal structures namely fit-outs as a service, reverse officing, pay-per-use models, all-access products, and more.
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