|
Flexible office space stock across Indias top seven office markets could nearly double to 170-180 million square feet by 2030 from an estimated 90 million square feet in 2026, as rising enterprise demand and the expansion of Global Capability Centres (GCCs) strengthen adoption, according to a report by Colliers and the Confederation of Indian Industry (CII).
The report said flexible workspaces could account for nearly one-third of overall Grade A office leasing by 2030, up from an estimated 20-25 per cent currently. Their share of total Grade A office stock is also expected to rise from around 10 per cent to 14-15 per cent over the next few years. The report points to a shift in how companies use flexible offices, with large enterprises increasingly adopting managed workspaces to support expansion, accommodate changing workforce needs and establish operations across multiple cities. Indias flexible workspace sector is undergoing a structural shift, from an alternative office format to an integral part of enterprise real estate strategy, said Ashwinder R Singh, Chairman of the CII Committee on Real Estate (NR) and Vice Chairman of BCD Group. Enterprise clients currently account for 75-85 per cent of overall demand for flexible workspaces. Annual enterprise seat uptake has grown at a compound annual growth rate of 33 per cent over the past five to six years, rising from around 55,000 seats in 2021 to an estimated 2.3 lakh in 2026. The report expects annual enterprise demand to increase by 40-50 per cent to 3-3.5 lakh seats over the next three to four years. GCCs have accounted for 45-50 per cent of enterprise demand in recent years, while technology, banking and financial services, engineering and manufacturing, consulting and healthcare are among the key demand drivers. Geographical expansion is also expected to support growth. Flexible office stock in emerging Tier II and Tier III cities is estimated at 8-12 million square feet in 2026 and could reach 20-25 million square feet by 2030. Enterprise clients, including GCCs, are likely to remain the primary demand drivers amidst growing preference for larger managed spaces, said Arpit Mehrotra, Managing Director, Office Services, India, Colliers. The report also highlighted growing investor participation, with flexible workspace operators collectively raising more than Rs 50 billion through initial public offerings since 2024, supporting their expansion and access to capital. (ANI)
|
