Mumbai, Nov 9 (IANS): India's co-working space market is likely to cross 50 million square feet by 2023, according to a JLL report.

It said that flexible space is likely to will grow by an average of around 15-20 per cent per annum over the next three-to-four years, although this trajectory will not be linear.

Currently market penetration of flexible spaces into India's total office stock stands at 3 per cent.

"The country is expected to witness deeper penetration, throughout 2021 and beyond, the flex space market is forecast to grow at a slower pace and more organically. Irrespective of several short-term disruptions and challenges, increased demand from large enterprises, will support the growth of the flex space market to more than 50 million square feet by 2023," it said.

"Flex space operators have changed the face of commercial real estate with their innovative offerings. This market is projected to grow at a steady pace throughout 2021 and beyond," said Ramesh Nair, CEO & Country Head (India), JLL.

The market penetration of flex spaces into total office space is likely to see a gradual increase from the current 3 per cent to 4.2 per cent by 2023, he said

"We expect this growth to continue, driven by demand, profitability and return-profile for investors, albeit at a slower pace resulting from the impact of Covid-19." said Nair.

At present, Bengaluru and Delhi-NCR together account for more than 50 per cent of the flex space stock in India, with Bengaluru housing around 10.6 million square feet of such spaces.

Hyderabad with 4.5 million square feet and Mumbai with 4.3 million square feet of flex office stock follow. According to JLL, Hyderabad and Pune are currently among the fastest-growing markets in the country.