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India’s flex space stock to cross 60 million sq ft by 2023
Gurugram, November 23, 2021 – Colliers forecasts flex workspace stock to cross 60 million sq ft in metro and non-metro cities by 2023, as occupiers embrace agility and flexibility in their work models, mentioned in a recent release by Colliers and Qdesq.
The demand for flex space will be largely driven by Consulting, IT-BPM and E-commerce companies who are establishing multiple satellite offices in suburban locations in metro cities. Metro cities remain the stronghold of flex spaces, accounting for about 88% of the total flex stock as of Q3 2021, mentioned in the report.
The flex market in India is evolving with many enterprises incorporating a flex space component in their portfolio. There are currently 3410 flexible centres across major cities, operating at about 70%, with the trend moving towards pre-pandemic levels.
Flex space is also emerging in non-metro cities as large enterprises are moving to a decentralised structure focusing on the flexibility and convenience of their employees. The total flex stock in non-metro cities to reach 7.8 mn sq ft by 2023, a 50% increase from current levels.
Major non-metros like Ahmedabad, Coimbatore, Indore, Jaipur, Kochi and Lucknow are witnessing robust activity and are the top 6 emerging non-metro flex locations.
Occupancy levels inching towards pre pandemic levels:
After a dip in occupancy and prices during covid, flex space is reviving in the latter part of 2021 with an average occupancy of 71%. Prices per seat have also seen an improvement by 21% as of September 2021, after falling by about 30% during the pandemic.
Colliers recommends flex space operators to focus on enhancing occupier experience by digitizing workspaces and providing add-on services, which shall receive more enquiries. As occupiers focus on health and wellness, demand for well managed Grade-A properties with superior infrastructure is ought to increase. Inclusion of digital infrastructure and smart facilities shall also contribute in achieving greater operational efficiency, reduce energy consumption and higher customer retention.
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