Why Are 86% of High-Growth Firms Opting for Managed Office Spaces in India?
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Synopsis
Discover why 86% of high-growth firms in India are shifting towards managed office spaces for their expansion needs. This insightful report highlights the factors driving this trend, including cost-efficiency and the demands of modern work environments.
Key Takeaways
- 86% of firms prefer managed office spaces for expansion.
- Cost-efficiency ranks as the top priority for 71% of businesses.
- Managed office spaces offer significant savings compared to traditional offices.
- Key growth drivers include urbanization, flexibility, and technology advancements.
- Future expansion is expected in tier 2 and 3 cities.
New Delhi, Dec 17 (NationPress) Managed office spaces (MOS) are rapidly becoming the go-to workspace model for global capability centres (GCCs) and rapidly expanding companies in India. According to a recent report, a significant 86% of firms are choosing MOS for their upcoming growth phases in the nation.
As GCCs expedite their expansion plans and businesses reassess their real estate strategies, MOS is emerging as the preferred framework for establishing secure, brand-consistent, and future-ready centres throughout the country.
The analysis from Awfis Space Solutions Limited and Anarock Research & Advisory revealed that a substantial 71% of firms consider cost-effectiveness the most critical factor in their office-related decisions.
“The transformation of workplaces in India is not merely about flexible leases or shared facilities; it involves companies fundamentally reassessing how their workspace strategy can drive business agility, attract talent, and enhance operational performance,” stated Amit Ramani, CMD of Awfis Space Solutions Ltd.
Businesses are on the lookout for partners who can offer more than just space; they seek a cohesive workplace ecosystem that combines design excellence, operational efficiency, technology integration, and a seamless client experience, the report indicates.
Approximately 57% of clients reported significant savings in fit-out and ongoing maintenance costs with MOS compared to traditional office setups.
For organizations managing hybrid work, rapid growth, and distributed teams, MOS offers the precision and flexibility that traditional real estate models often fail to provide cohesively, the report highlighted.
Key factors driving the adoption of MOS include the shift towards flexible work environments, the rise of startups and SMEs, urbanization, talent mobility, cost efficiency, and technological progress.
Looking forward, the report anticipates ongoing changes across multiple dimensions: increased corporate adoption as businesses transition from ownership to outcome-based real estate strategies; geographic growth into tier 2 and 3 cities bolstered by enhanced infrastructure and the normalization of hybrid work; technology integration via IoT, AI, and analytics for workspace optimization; alignment with global ESG standards for sustainability; and community building that balances secure private spaces with meaningful engagement opportunities.
Point of View
It is evident that the shift towards managed office spaces reflects a significant transformation in corporate strategies. The preference expressed by 86% of high-growth firms highlights the necessity for adaptable and cost-effective work environments in today's dynamic business landscape.
NationPress
17/12/2025
Frequently Asked Questions
What are managed office spaces?
Managed office spaces (MOS) are flexible work environments that provide businesses with the necessary infrastructure and services to operate efficiently without the commitments of traditional leases.
Why are firms choosing managed office spaces?
Companies are opting for managed office spaces due to their cost-effectiveness, flexibility, and the ability to create a cohesive workplace ecosystem that enhances operational efficiency.
What role do technology and sustainability play in managed office spaces?
Technology, such as IoT and AI, plays a critical role in optimizing workspace functionality, while sustainability initiatives align with global ESG standards, making MOS a future-ready choice for businesses.
