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The flexible office space market in India may witness a 60% surge to over Rs 14,000 crore in the current fiscal year, pushed by operators' increased rent per desk and an expansive portfolio, according to a report from Upflex India. The total portfolio of flexible workspace operators has expanded to 12.66 lakh from 10.4 lakh in 2022-23, covering 57 lakh square feet.
The annual co-working market size in terms of rental income is projected to climb to Rs 14,227 crore this fiscal from Rs 8,903 crore in the previous year. Upflex data reveals the average price per seat per month has risen from Rs 9,200 to Rs 10,400, accompanied by a boost in occupancy to 90% from 75%.
The report was unveiled by Karan Virwani, CEO of WeWork India. Virwani highlighted the transformative role of flexible workspaces in India's commercial real estate amid the evolving workforce dynamics and the increasing adoption of hybrid work models.
Pratyush Pandey, CEO of Upflex India, emphasized the paradigm shift toward flexible workspaces, citing a pre-COVID landscape with around 400+ operators in 55 cities and post-COVID expansion to about 965+ operators in 90 cities with 2,320 locations.
The market's expansion is attributed to the heightened demand for hybrid working, with large corporations consciously opting for managed office solutions rather than investing in large spaces independently. The flexibility provided by such solutions aligns with cost-saving strategies and enhances adaptability in the corporate environment.
As of June 2023, the co-working sector's share of overall commercial office leasing stood at 19%, with expectations that this number will reach 25-27% by the end of the current fiscal year. This robust growth is not confined to metropolitan areas but extends to Tier 2 and 3 cities, showcasing the increasing acceptance and adoption of flexible workspaces across diverse urban landscapes.
The report underscores the resilience and pivotal role of the flexible office space market in shaping India's evolving work culture and commercial real estate dynamics.
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