“The growth in traditional and flex spaces has been robust in 2022 as occupiers were more upbeat about leasing space and expanding their footprint. In 2023, despite the office market being riddled with uncertainty, the office sector is poised for growth, provided the economic environment remains bright. We do not expect the leasing numbers to fall below the peak pandemic levels of leasing even in a pessimistic scenario. The key fundamentals of office market will follow the trajectory of demand and supply to maintain a balance in the market,” said Peush Jain, Managing Director, Office Services at Colliers India.
How will the office sector perform during 2023?
“Hybrid working has been a game-changer in the future of work. To accommodate employees’ changing needs, occupiers are likely to switch gears towards adoption of hybrid model. This would benefit companies through optimal space utilization. Occupiers are also likely to split their large offices into satellite offices, to bring offices closer to employees’ home. As a byproduct, the demand for flex spaces is likely to see an uptick. In the next few years, hybrid working is likely to pivot key office fundamentals, and will be especially critical for the growth of flex spaces,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
