FE - Flex space occupancy soars above 80% amid strong market demand: Report

Occupancy rates for flexible workspaces exceed 80% across all major office markets. Key office hubs such as Mumbai (94%), NCR (92%), Bengaluru (86%), and Hyderabad (84%) continue to draw corporations, resulting in heightened demand for adaptable office environments, according to a Knight Frank India report.

In response to this growing demand, flexible space providers have markedly expanded their office space acquisitions, leasing approximately 52.9 mn sq ft (msf) from 2017 through the first half of 2024, achieving a strong compound annual growth rate (CAGR) of 22%. During the first half of 2024 (January to June), flexible workspace operators leased 7.17 msf, reflecting a 6% increase compared to the same period in 2023. This leasing activity represented over 21% of total commercial real estate transactions, underscoring the increasing interest in flexible workspaces.

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