Report Shows Significant Rise in Flex Space Transactions, Reflecting Changing Work Culture
In the first quarter of this year, India witnessed a notable surge in the demand for office spaces across its major metro cities. According to a recent report by Knight Frank India, co-working or flex spaces have particularly soared, accounting for 23 percent of total office space transactions. Leading this surge is Pune, with transactions totaling 1.2 lakh square feet in flex space, closely followed by Bangalore with nine lakh square feet of transactions.
From January to March, a staggering 1 crore 62 lakh square feet of office space were transacted, marking a substantial 43 percent increase compared to the same period last year.
The report highlights that major contributors to office space transactions are the Indian offices of multinational corporations (MNCs), with global facilities comprising the largest share at 59 lakh square feet, followed by Indian facilities at 50 lakh square feet. Co-working spaces have also witnessed a remarkable boost, accounting for 38 lakh square feet, a significant jump from 3.4 lakh square feet in the same quarter last year.
As many small companies and startups find dedicated office spaces financially challenging, the concept of shared office spaces is gaining momentum. This model allows multiple businesses to share a common workspace and facilities, resulting in significant cost savings.
Breaking down the co-working space transactions in million square feet, Pune leads with 12, followed by Bangalore at 9, Delhi at 8, Mumbai and Ahmedabad at 3 each, and Hyderabad and Chennai at 2 each, totaling 38 million square feet.
The surge in demand for office spaces can be attributed to the country’s economic stability and burgeoning business opportunities, prompting many companies to expand their operations. This upward trend underscores the increasing preference for co-working spaces among businesses.
