Over 80% leasing by flexible space operators in Delhi-NCR, Bangalore, Mumbai
MUMBAI: India is leading the growth of flexible office spaces across Asia-Pacific region as the overall stock of co-working spaces across seven key cities of the country has increased to 15 million sq ft, showed a CBRE South Asia report.
Making India one of the biggest markets in the APAC region, the flexible office supply has increased 50% in the first quarters of the year as against 10 million sq ft as on 2017 end.
Bangalore and Delhi-NCR have emerged as the largest markets for flexible spaces in India, with a combined share of almost 55% in overall leasing by flexible space operators.
These office spaces account for 1.7% of total stock in Asia-Pacific; Shanghai and Delhi-NCR are the only two cities where flexible space share is more than 3% of the overall office stock.
“Originating as a shared service for start-ups, flexible spaces are now being utilized by established corporates as well to make their portfolios more agile amid a dynamic business environment. Given that the Indian flexible space market is one of the biggest across APAC, we anticipate that this segment will remain high on the investor radar as well,” Anshuman Magazine, chairman, India and South-East Asia, CBRE.
He expects the leasing quantum of this segment would rise to 7-9 million sq ft by 2020 as against around 5.4 million sq ft in 2018.
Leasing activity by flexible space operators quadrupled from 2016 levels to about 3.5 million sq ft in 2017. More than 80% of the leasing by flexible space operators was witnessed in the top three cities of Delhi-NCR, Bangalore and Mumbai.
Moreover, the share of flexible spaces as a part of total office absorption has also doubled from 5% in the first half of 2017 to around 10% in the first half of 2018.
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