Flex Spaces in Indian Real Estate Gaining Momentum, Reveals FICCI-Colliers Report
Dec 01, 2023
BENGALURU, 1 DECEMBER 2023: The rapidly evolving landscape of the Indian real estate market is witnessing a significant shift towards flex spaces, as highlighted in the latest FICCI-Colliers Knowledge Report titled “Shared Office Spaces in India - Flexing Ahead”. This report was unveiled at the FICCI 2nd Edition of Commercial & Industrial Real Estate Conclave, held on December 1st, 2023, Bengaluru.
The conclave, themed “Unlocking Growth opportunities in Commercial & Industrial Real Estate,” saw an esteemed panel of industry leaders discussing the resilience of tech occupiers and the burgeoning demand for flex spaces. Mr. Raj Menda, Chairman of the FICCI Real Estate Committee and Chairman of Supervisory Board, RMZ Corporation, opened the event, setting the context for the day's insightful sessions.
Delivering the keynote address, Mr. Raj Menda, Chairman, FICCI Real Estate Committee and Chairman of the Supervisory Board at RMZ Corporation, expressed, "We are in midst of a transformative change and the commercial real estate market in India has shown remarkable resilience and innovation, especially in the wake of the recent global challenges. India continues to be the fastest growing flex office market in the APAC region and will witness robust growth in the years to come. The market is also gradually evolving towards Mixed-use developments, which will combine elements of office, retail, hospitality and residential spaces. This resurgence is a testament to the sector's adaptability and its critical role in India's economic fabric. Hybrid working has comprehensively changed the workplace dynamics as occupiers are increasingly realising the full potential of optimization with plug-and-play shared office space. Therefore, the flex space will continue to grow in double digits and is set to constitute 20% of the overall office market by 2030."
The key insights from the FICCI-Colliers report 'Shared Office Spaces in India: Flexing Ahead' reveal a significant transformation in India's commercial real estate sector, with the flex office market growing fourfold post-pandemic. Flex spaces now command a 51% share in overall office space leasing, a testament to their rising popularity among large enterprises, start-ups, and Global Capability Centres. The adoption of hybrid working models, along with the demand for customizable and cost-effective workspaces, is propelling this growth. By 2030, flex space is projected to represent one-fifth of the office market, marking a pivotal shift in workplace dynamics.
This conclave has highlighted the pivotal role of flex spaces in shaping the future of the Indian commercial real estate market, marking a significant trend that is set to redefine the sector in the years to come.