India’s Flexible Workspace Sector Achieves Record Gross Leasing Volume
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Synopsis
India's flexible workspace sector has achieved a record gross leasing volume of 12.4 million square feet in 2024, reflecting a significant year-on-year growth driven by the demand for agile office solutions across major cities.
Key Takeaways
- 12.4 MSF gross leasing volume in 2024.
- 57.5 percent year-on-year growth.
- Bengaluru leads with 3.4 MSF leasing.
- 224,000 seats leased, 44 percent increase from 2023.
- 14 percent of total office leasing comes from flex spaces.
New Delhi, Feb 17 (NationPress) The flexible workspace industry in India has achieved a remarkable milestone with a gross leasing volume (GLV) of 12.4 million square feet (MSF) in 2024, as reported on Monday.
This represents an impressive 57.5 percent increase year-on-year, showcasing the escalating demand for agile, modern, and cost-effective office spaces across major cities, according to data from Cushman & Wakefield.
The flexible workspace sector encompasses business centres, coworking centres, and managed offices.
Currently, the gross leasing volume from the flexible workspace sector constitutes 14 percent of India’s overall office leasing, which totals 89 MSF, highlighting its increasing importance in the commercial real estate market.
Among the leading markets for flexible workspaces in India, Bengaluru topped the list with 3.4 MSF in leasing volume, nearly doubling its figures from the previous year.
Mumbai experienced a threefold increase in GLV, achieving 1.9 MSF, reflecting the growing demand in India’s financial hub.
Delhi NCR with 2.3 MSF GLV, Hyderabad at 1.6 MSF GLV, and Pune also at 1.6 MSF GLV have emerged as strong contenders in the flexible workspace arena, as indicated by the report.
As new companies (GCCs) enter the Indian market and existing businesses emphasize operational flexibility, cost-effectiveness, and bespoke solutions, the demand for adaptable, managed office spaces continues to rise, stated Ramita Arora, Managing Director of Bengaluru and Head – Flex, India, at Cushman & Wakefield.
The data reveals that changing business needs, the necessity for flexibility, the transition to hybrid work models, and robust enterprise interest in managed office solutions have driven flex seat leases to unprecedented levels.
By the end of 2024, approximately 224,000 seats were leased by final occupiers from flexible workspace providers, marking a 44 percent rise compared to 2023’s 156,000 seats.
In terms of city performance, Bengaluru maintained its lead with a 29 percent share (equating to 64,000 seats) of the total leased seats for the year, solidifying its position as India’s premier flexible workspace market.
Following Bengaluru were Pune with 39,000 seats, Delhi NCR with 38,000 seats, and Mumbai with 28,000 seats, representing shares of 18 percent, 17 percent, and 12 percent respectively in total seats leased.
