As a good number of companies are crafting their own hybrid work model, the demand for flexible workspace is set to cross 60 million sq.ft. in metros and non-metros by 2023, says a report by Colliers and Qdesq.
This trend results from an increasing demand for flexibility from workforces that have had a taste of it on account of the pandemic.
The demand for flexible workspace will be driven by companies in the consulting, IT-BPM and e-Commerce space that are establishing multiple satellite offices in suburban locations; as also businesses that are reassessing the use of their office.
While the big metropolitan cities will dominate much of the flexible spaces, accounting for about 88% of the total flex stock as of Q3 2021, Ahmedabad, Coimbatore, Indore, Jaipur, Kochi and Lucknow are witnessing robust activity and are the top six emerging non-metro flex locations, says the report.
In a press release, Ramesh Nair, CEO (India), Colliers, said that reverse migration to Tier 2 cities and growth of new startups are a few reasons why the flex industry is headed for greater growth.
“Occupiers are looking at next-generation offices and the future workplaces will be unique for each occupier. Flex workspace operators must continue to focus on customisation and providing on-demand workspaces,” says Ramesh.
There are currently 3410 flexible centres across major cities, operating at about 70%, with the trend moving towards pre-pandemic levels.
The total flex stock in non-metro cities is expected to reach 7.8 million sq.ft by 2023, a 50% increase from current levels.
Prices per seat have also seen an improvement by 21% as of September 2021, after falling by about 30% during the pandemic.
Vimal Nadar, senior director and head of research, Colliers India, said that in non-metros, occupiers are taking up seats for their sales and regional offices.
They are also evaluating the concept of ‘work from near-home’ through satellite and hub-and-spoke offices.
