These Were The Top 10 Hottest Markets For Flexible Office Space In 2024

As cities adapt to economic changes and hybrid work, demand for adaptable spaces is surging. Flexible workspaces are now integral to modern work culture.

The flexible office market in 2024 was a testament to how businesses are successfully operating in a hybrid world. 

According to The Instant Group’s new report, here’s a look at the top 10 hottest markets for flexible office space based on desk inquiries in 2024. The report measured growth rates or declines by their 3-year CAGR (compound annual growth rate), which highlights longer-term trends.

1. London, England

London saw a -11% decline in its flexible office market, but the city remains a global business hub. Demand is changing from shared spaces to tailored, managed solutions, with increasing interest in outer London.

2. Dubai, UAE

Dubai is booming with a 13% growth rate, driven by its strategic location, advanced infrastructure, and government support. The city’s rising demand for coworking spaces is fueled by its growing remote worker population and a diverse economy.

3. Riyadh, Saudi Arabia

Riyadh leads with a 58% growth rate, driven by Saudi Arabia’s Vision 2030, which supports innovation and entrepreneurship. The city has high demand but limited coworking providers, presenting an opportunity for growth.

4. Sydney, Australia

Sydney remains the APAC leader in demand for flexible offices but saw a slight -5% decline. The shift reflects growing competition from other APAC cities challenging its dominance in the sector.

5. Bangalore, India

Bangalore has a steady 8% growth, bolstered by its booming tech ecosystem. The city has seen a rise in demand for larger workspaces, solidifying its position as India’s leading innovation hub.

6. Makati, Philippines

Makati continues to thrive with a 6% growth, known as the financial center of the Philippines. Its prime location and premium office spaces attract businesses across Southeast Asia.

7. Mexico City, Mexico

Mexico City faced a -14% decline, largely due to political uncertainties. While demand slowed in 2024, the market remains promising and is expected to rebound as conditions stabilize.

8. New York City, USA

New York saw a -5% decline, but it remains an essential global business hub. Despite setbacks, the city’s status ensures ongoing demand for flexible office spaces.

9. Kuala Lumpur, Malaysia

Kuala Lumpur experienced an impressive 78% year-over-year increase in 2024. The city’s strategic location and strong infrastructure make it an attractive business hub.

10. Johannesburg, South Africa

Johannesburg showed strong 10% growth in the past three years, positioning South Africa as a quickly expanding market for flexible workspaces in Africa.

What To Take Away

The global flexible office market is maturing, with markets like Bangalore, Dubai, and Makati showing steady growth. Meanwhile, established hubs like London, New York City, and Sydney face challenges, highlighting the need for innovation in mature markets.

As we move into 2025, flexibility will remain a key driver in office solutions. Emerging markets are gaining momentum, altering the focus from traditional hubs to cost-effective regions with access to global talent. The next wave could bring more hybrid models and tailored spaces designed for specific industries, further reshaping how we work.