Market Size of India Flexible Office Space Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.15 Billion |
| Market Size (2029) | USD 3.04 Billion |
| CAGR (2024 - 2029) | 7.05 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Flexible Office Space Market Analysis
The India Flexible Office Space Market size is estimated at USD 2.15 billion in 2024, and is expected to reach USD 3.04 billion by 2029, growing at a CAGR of 7.05% during the forecast period (2024-2029).
Flex space operators have changed the face of commercial real estate with their innovative offerings. This market is projected to grow steadily throughout 2021 and beyond. Flexibilised office spaces are becoming a favorite choice of employers for a return to work across all parts of India, and almost half of companies plan to increase their use over the next year.
Over the following 12 months, a significant increase in flexible office space use has been identified by more than 47 % of respondents. The survey also noted that by 2025, 56 percent of respondents had a target to have at least 10 % of the office portfolio as flexible space. This growth is to continue, driven by demand, profitability, and return profile for investors, albeit at a slower pace resulting from the impact of COVID-19. Developments that initially caused the growth of the flex market, like the focus on utilizing workplaces to boost productivity and drive dynamic work cultures, enhance emphasis on employee health, etc., will continue to influence the next phase in India.
In 2022, Bengaluru and Delhi NCR account for more than 50% of India's flexible office space stock, with Bengaluru housing around 10.6 million sq ft of such spaces. Hyderabad with 4.5 million sq ft and Mumbai with 4.3 million sq ft of flexible office stock follow. While the flex-space market more than tripled in the last three years, the momentum going ahead will be relatively slower. Players are likely to tread cautiously, and the overall market is expected to be 1.5 times the current size. At the same time, demand for flexible space is expected to remain resilient, and the size of the flex space market will likely cross 50 million sq in the current year, led by increased demand from larger enterprises.
