Bengaluru, 07 September 2024: The evolving workplace landscape and shifting perceptions of real estate are driving a surge in the adoption of flex spaces. Our latest survey-based report, “Flex Spaces: Reshaping the New-Age India Office Market,” reveals that over 80% of occupiers are planning to expand their office portfolios through flex spaces in the coming years.

Survey Highlights

• Expansion Through Flex Spaces
• Over 80% of occupiers are set to increase their office portfolios by incorporating flex spaces in the next 3-5 years.
• Approximately 60% of occupiers anticipate having at least 20% of their office portfolio dedicated to flex spaces, with about 30% preferring more than 40%.
• Core Business Operations
• Around 40% of occupiers view flex spaces as central to their core business operations.
• The trend is particularly notable in the technology sector, where 40% of occupiers are using flex spaces for their core operations.
• Location Preferences
• Approximately 45% of occupiers prefer expanding their portfolios in core areas of major cities, such as Central Business Districts (CBD) and Secondary Business Districts (SBD).

Key Trends and Insights

• Flex Space Adoption
• Flex spaces are becoming mainstream, with significant growth expected among multinational companies (MNCs). The sector’s endorsement is projected to rise 3-4 times by 2030.
• Benefits such as increased flexibility, cost management, enhanced productivity, and sustainability are driving this adoption.
• Longer Lease Preferences
• 77% of occupiers favor relatively longer lease periods, typically over 1 year, reflecting growing confidence in flex space solutions.
• Flex Spaces as Core Operations Hubs
• Flex spaces are evolving beyond support roles, with many mid and large-sized companies integrating them into core business functions.

Expert Opinions

• Arpit Mehrotra, Managing Director, Office Services, Colliers India
• “Flex space offerings are transitioning from niche to mainstream, with 60% of occupiers expected to have a flex space share of 20% or more in their portfolios over the next 3-5 years. The trend indicates that flex spaces will play a crucial role in future real estate expansion across various sectors.”
• Vimal Nadar, Senior Director & Head of Research, Colliers India
• “The maturity of the flex space market, combined with enterprise-level services, is leading to longer commitment periods. Occupiers, including MNCs, are increasingly inclined toward flex spaces with longer leases, reflecting their confidence in this growing trend.”

The report underscores a significant shift in the India office market towards flex spaces, driven by the need for flexibility