New Delhi, Feb 17 (IANS): India’s flexible workspace sector registered an all-time high gross leasing volume (GLV) of 12.4 million square feet (MSF) in 2024, a report showed on Monday.
This marks a 57.5 per cent year-on-year growth, reflecting the surging demand for agile, new age and cost-effective office solutions across key cities, according to Cushman & Wakefield’s office data.
Flexible workspace sector includes business centres, coworking centres and managed offices.
Flexible workspace sector’s gross leasing volume now accounts for 14 per cent of India’s total office leasing (89 MSF), underscoring its growing significance in the commercial real estate landscape.
Among India’s top flexible workspace markets, Bengaluru led with 3.4 MSF of leasing volume, nearly doubling its previous year’s tally.
Mumbai, meanwhile, recorded a 3 times growth in GLV, reaching 1.9 MSF, a testament to rising demand in India’s financial capital.
Delhi NCR at 2.3 MSF GLV, Hyderabad at 1.6 MSF GLV, and Pune at 1.6 MSF GLV, also emerged as strong flexible workspace hubs, said the report.
With new companies (GCCs) entering the country and existing companies prioritising operational flexibility, cost efficiency and end-to-end customisation, demand for agile, dynamic, managed office solutions continues to surge, said Ramita Arora, Managing Director Bengaluru and Head – Flex, India, Cushman & Wakefield.
According to the data, evolving business priorities, the need for flexibility, the shift toward hybrid work models and strong enterprise demand for managed office solutions fuelled historic highs in flex seats leased.
Around 224,000 seats were leased in 2024 by end occupiers from flexible workspace operators, a 44 per cent increase over 2023 (156,000 seats).
In terms of cities, Bengaluru again dominated with a 29 per cent share (64,000 seats) in total seats leased in the year and maintained its status as India’s leading flexible workspace market.
Bengaluru was followed by Pune (39,000 seats) Delhi NCR (38,000 seats) and Mumbai (28,000 seats) with shares of 18 per cent, 17 per cent and 12 per cent, respectively in total seats leased.