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The flex space segment has emerged as the second-biggest contributor to India's office leasing market in 2024, capturing 19.8 per cent of the annual gross leasing activity and setting a new record of 15.3 million sq. ft, according to JLL.
The rapid rise of this segment underscores its growing prominence as businesses embrace flexible workspace solutions. Delhi NCR emerged as the top market for flex space leasing, commanding a 42 per cent share of total flex leasing activity in India. Pune followed with 14 per cent, while Bengaluru, traditionally the largest flex market, secured third place with a 13 per cent share. Notably, Delhi NCR, Pune, and Mumbai recorded their best-ever leasing year in 2024, reinforcing a strong shift towards flexible workspaces. Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, "With a robust pipeline of IPOs, strong occupancy rates, and significant PE backing, flex space has solidified its position as a long-term player in India's commercial real estate." India's flex office stock has expanded 2.5 times since 2019, reaching 74 million sq. ft across the top seven cities. Bengaluru continues to lead, commanding a third of the operational flex footprint, while Chennai has emerged as the third-largest market for enterprise seat take-up. Enterprise demand for flex space has grown significantly, with leasing surpassing 183,200 seats in 2024, a 9.2 per cent increase year-on-year (YoY). Pune has experienced the highest growth in flex stock, with a CAGR of 33 per cent since 2019, outpacing all other major cities. Driven by the expansion of managed workspace providers offering fully serviced office solutions, the average flex space deal size increased by 21.4 per cent YoY, reaching 63,000 sq. ft in 2024. Large enterprises continue to drive demand, leveraging modern, tech-enabled office layouts and amenities to facilitate workplace expansion and employee engagement. "The sector's exponential growth is further evidenced by surpassing the million-seat milestone, now boasting over 1.1 million operational flex seats. Enterprise demand has skyrocketed, with a record-breaking 183,200 seats leased to businesses in 2024 - a 9.2 per cent Y-o-Y increase," said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL. Flex space operators are aligning with the market's shift towards sustainability, with over two-thirds of all leased flex space in 2024 located in green-certified business parks. Occupiers are increasingly prioritizing high-quality, environmentally responsible workspaces, reinforcing flex space as an integral part of their real estate strategies. The increasing adoption of flex solutions signals a fundamental shift in occupier preferences, with companies incorporating flexible spaces into their long-term real estate strategies. As India's office market continues to grow, flex space is expected to play an even greater role in making India the 'office to the world'. (ANI)
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