According to ICRA, the supply of flexible (flex) and co-working offices in India is expected to grow at a robust CAGR of 21-22% between FY2025 and FY2027. By March 2027, the top six cities—Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR), and Pune—will have grown to ~125 million square feet.
MSF from ~80 MSF in December 2024. After one successful initial public offering (IPO) in 2024, this market is expected to experience five significant IPOs in the upcoming 12 to 18 months, with a combined anticipated revenue of over Rds.. 7,000 crore Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA.
Provided additional context by stating: “The flex office supply for the top six cities has more than doubled to over 67 MSF as of March 2024 from 32 MSFs as of March 2020.” According to ICRA, it will motivated by shorter lease terms, flexibility, and reduced initial capital expenditures for renters. The share of flex workspaces.
In the commercial office segment (non-SEZ) is expected to double to 12.5-13.5% in FY2027 from 5.3% in FY2020. The market is still well-organized, with the top five companies holding 40% of the flex office space in FY2024, despite the entry of several new operators in recent years Flex workspace leasing activity remained.
Robust in FY2024, with absorption of approximately 13 MSF versus supply of approximately 14 MSF. This was bolstered by robust demand from domestic corporates, start-ups, and enterprise clients. Due to this pattern, the vacancy rates decreased from 20% in March 2023 to 17% in March 2024, a 300 basis point.
Because it can adapt to changing company demands and provide flexibility, affordability, and a variety of facilities, the segment is well-positioned for medium-term, robust growth. Flex office operators have seen impressive growth, but the market is still vulnerable to cyclicality in the real estate industry, rising competition.
High lease renewal risk (due to short-term leasing), and a supply of high-quality three office space in prime location decrease. In spite of Over the past two to three years, IT/Items enterprises have been the main drivers of demand for flexible workspaces in India, followed by manufacturing, engineering, and start-up three businesses.
About 67% of the flex-space leasing in the top three segments—IT/Items, already filed preliminary documents with the Securities and Exchange Board of India. Engineering & manufacturing, and start-ups three was India’s flexible office space sector is poised for significant growth, with ICRA projecting a compound annual growth rate (CAGR) of 21–22% between FY2025 and FY2027. The total supply top.
This expansion is driven by increasing demand for flexible workspaces offering short-term leases and lower capital expenditure for tenants. The sector has seen a surge in popularity among startups, SMEs, and large enterprises, leading to a significant increase in supply and absorption rates. In FY2024, leasing activity.
In addition to the growth in office space, the sector is expected to witness significant financial activity. After one successful initial public offering (IPO) in 2024, five major IPOs are projected in the next 12–18 months, aiming to raise over ₹7,000 crore. Companies such as SmartWorx, We Work India, and Indirubin Spaces Ltd have.
Despite the influx of new supply, vacancy rates are expected to remain stable, TO ALL ranging between 16.5% and 17% by March 2025, and improving to 15.5%–16.5% by March 2027. The share of flex workspaces in the commercial office segment (non-SEZ) is anticipated to double to 12.5%–13.5% in FY2027 from 5.3% in FY2020 This robust growth trajectory indicates a maturing sector with increasing investor.
- Group Media Publication
- Construction, Infrastructure and Mining
- General News Platforms – IHTLive.com
- Entertainment News Platforms – https://anyflix.in/