India’s flexible workspaces have grown rapidly, with 2018 seeing the highest flex space leasing activity ever. Colliers International reported that operators had taken over 7 million square feet during that year, accounting for 14% of total leasing.
Vineet Anand, Director-Office Services at Colliers International India, said that Bengaluru accounted for the largest amount of leasing by operators, followed by Mumbai and Delhi-NCR.
The shift in work culture can be accredited to the growth of the Millennial workers, which currently takes up 46% of India’s overall workforce. With this, India’s startup and entrepreneurial community is expanding.
Many startups typically pivot towards the flex office workstyle, but now even some enterprises have opted for such spaces that allow for more flexibility and ease of setting up offices.
“A growing number of companies will continue to base some teams out of shared workspaces as they enter newer markets or set up new teams,” said Anand.
Now, developers predict 2019 to see the market expanding by over 16 million seats and around 9 million square feet due to rising office rentals across India’s business districts.
As the commercial real estate sector expands over the course of the next two to three years, experts predict consolidation amongst firms will be the next step.