New Delhi: Flexible space operators have emerged as the second- largest sector in the office space leasing for the first time during the January-March quarter as large operators continue to take up space the fulfill the growing demand from global corporates.

According to CBRE data, of the total 14.4 million sq ft leased in the Q4 FY 24, 26% was by the tech sec tor and 22% by the flexible space operators.

The 3 million sq ft taken by flexible space operators is also the highest space take up by the segment in a quarter.

“During 2024, occupiers would priorities high-quality office space as they continue to facilitate portfolio expansion and consolidation. India’s inherent advantages, such as its skilled workforce and well-established business ecosystem, continue to hold appeal, leading to a positive outlook for the office sector,” said Anshu- man Magazine, Chairman & CEO -India, South-East Asia, Middle East & Africa, CBRE.

India is the fastest-growing flexible office market in the world.

The sector is likely to gain further traction driven by increasing demand across diverse segments, including large enterprises, the burgeoning start-up ecosystem, and GCCs establishing their R&D operations in India.

“One of the key drivers behind exponential growth of the sector is the flexibility and agility offered by shared work- spaces. With the rise of re- mote work and the gig economy, businesses are increasingly seeking versatile solutions to accommodate fluctuating space requirements,” said Rajat Kapur, Regional Managing Director – North India & UAE, The Executive Centre.

As hybrid work models become increasingly popular, the anticipated strong demand for flexible spaces would propel the sector’s impressive growth trajectory for the foreseeable future.

Source- The Economic Times