|
India maintained its position as the most mature flexible office market in the world with a top score of 100 per cent on Cushman & Wakefield's Flexible Office Market Maturity Index, according to the firm's latest report titled Global Trends in Flexible Office 2026.
Market projections in the report indicate that India's flex inventory will surpass 100 msf within 2026 and expand to approximately 160 msf by 2030, nearly doubling current levels. The countrys flexible workspace inventory reached 88.7 million square feet (msf) in the first half of 2026, accounting for 10.5 per cent of Indias overall commercial office stock. Flexible office space absorption recorded its strongest first-half performance during H1 2026, with operators leasing 8.5 msf across the top eight Indian cities. This sector now constitutes approximately 20 per cent of overall office leasing across the country. Between 2023 and 2025, operators leased 44.1 msf, translating to over 720,000 seats. Total seat absorption expanded from nearly 38,000 seats in 2020 to an estimated 300,000 seats in 2026. Ramita Arora, Executive Managing Director, Bengaluru & Head - Flex, India, Cushman & Wakefield, observed, Indias position in the global flex market reflects how deeply the model has become embedded in the countrys office ecosystem. Flexible offices today can support businesses across the lifecycle of their real estate requirements, from establishing a presence to scaling teams and managing longer-term portfolio needs. She noted that the convergence of market drivers continues to build sector resilience. More importantly, we are seeing demand, capital and product quality advance together, which is creating a stronger foundation for sustained growth. Regional demand patterns showed strong traction beyond traditional primary centers in H1 2026, with flex operators accounting for 35 per cent of total leasing in Pune, 33 per cent in Ahmedabad, and 26 per cent in Hyderabad. On-demand usage tracked through an Upflex assessment of roughly 23,000 bookings revealed India's global share increased from 2.2 per cent in H1 2025 to 10.2 per cent in H1 2026, ranking second behind the United States. Arora added, Greater institutional participation is bringing long-term capital and discipline into the sector, while evolving occupier expectations are pushing operators towards higher-quality, more sophisticated offerings. She further pointed out, With newer demand pools also emerging, including AI-led businesses, the opportunity for flex is becoming both broader and more enduring. The report noted that cross-border movements gained momentum alongside institutional funding, with four operators publicly listed and another public issue in development. Smartworks entered Singapore and Table Space proposed a stake in KMC Solutions in the Philippines, while regional operators like JustCo and Middle East-based players expanded operations into India. (ANI)
|
