Is The Vestian Prediction of a Flexible Office Space Boom in India by 2025 Realistic?

Flexible office space in India - A growth story.

According to a survey by Vestian, adaptable office spaces are seeing rapid expansion in India's rapidly changing commercial real estate market.

According to a new analysis titled "Flexing the Workspace-Back to Office," operators' efforts to fulfil rising demand will result in a 52% rise in the supply of flexible office space by 2025, bringing the total to an impressive 81 million square feet.

The Current Scenario for Modular Workplaces in India:

Vestian reports that there will be 81 million square feet under the management of flexible office space providers by 2025, up from the 53 million square feet now under management. The rising need for adaptable, low-cost, and technologically sophisticated office spaces has contributed to this expansion, especially in well-known commercial hubs like Whitefield in Bengaluru and Hitec City in Hyderabad.

Vestian CEO Shrinivas Rao pointed out that the industry is in its infancy in India compared to its equivalents in the United States and Europe.

"As COVID-19 has catalysed the market growth, the flexible spaces sector in India has grown gradually, and the stock is expected to reach 81 million sq ft by 2025," he said.

The paper highlights that the increased use of flexible spaces in India began in 2015–16, changing a previously disjointed and unorganised business into a quickly expanding and more structured one. Due to their cheap cost and adaptability, these spaces are gaining favour among a wide range of businesses, from startups and SMEs to multinational corporations.

Shrinivas Rao also added that 2023 would be a difficult year for companies due to macroeconomic uncertainties and recessionary worries. Flexible spaces, he said, are one way to weather the world's currents, and their popularity is only projected to grow as more businesses embrace hybrid work patterns.

Dedicated workstations, hot desking, coworking spaces, and serviced and managed offices are all part of India's spectrum of flexible office spaces. According to the survey, the most flexible workplaces are coworking spaces, while the least flexible are managed offices.

The future of flexible office spaces in India is bright, according to Vestian's research, which predicts that by 2025, the flexible office sector would account for roughly 25% of the entire office space absorption in the country.

There are now 50 main flexible space operators in the market, with the top 10 controlling 84% of the overall flexible office space portfolio. Hotspots for flex space operators and tenants include Baner in Pune, Andheri (E) in Mumbai, and DLF Cybercity in Gurugram.