According to the latest research report by IndiQube-CRE Matrix, the flexible workspace market in India is expected to reach 126 million square feet (msf) by 2027, from its current size of 46.7 msf. This represents a compound annual growth rate (CAGR) of 22% in a 5-year time frame.
The report, titled ‘India Flexible Workspace Report’ highlights the increasing demand for flexible workspaces, particularly in light of the Covid-19 pandemic, which has led to a dynamic shift towards remote and hybrid working models.
The report also identifies key trends in the flexible workspace market in the top 6 cities. It interestingly brings out the fact that co-working inventory in Bangalore (13.6 msf) is nearly equivalent to the sum of MMR (6.3 msf) & NCR (7 msf) which again is equivalent to the sum of Pune (5.3 msf), Chennai (2.8 msf) and Hyderabad (5.7 msf). Co-working Inventory Equation: Bengaluru = MMR + NCR = Pune + Chennai + Hyderabad.
Coworking penetration on the other hand has also been making significant strides. In 2017, the co-working penetration of total office inventory was 1.5%. This number has increased to 6.1% in 2022 and is expected to become 12.6% of the total office inventory by 2027.
Commenting on the report, Rishi Das, Co-Founder, IndiQube, said, “In collaboration with CRE Matrix, we at IndiQube are glad to present the growth story of flexible workspaces in India taking a deep dive into the economics and fine contours of deal-making in the co-working segment. Having witnessed the transformation of the Indian workplace over the past decade and especially during the post pandemic period, I can undoubtedly say that “Flex is the Future” and the findings of this report reinforce the fact that ‘Flexibility’ has indeed become the need of the hour.”
Abhishek Kiran Gupta, CEO & Cofounder, CRE Matrix says, “CRE Matrix Research team along with one of India’s largest flex space operators, IndiQube, have teamed up to present a first of its kind flexible workspace report which elaborates finer details of the flex segment. Our research is based on more than 7 lakh data points originating from registered office transactions across India and is bound to empower users with analysis and ideas that can help stakeholders stay ahead in this current growth trajectory of one of the most exciting and evolving real estate trends in India.”
