Delhi-NCR has surpassed Beijing and Seoul to become the third-largest city in the Asia-Pacific region (APAC) with a flexible office stock of 8.4 million square feet, according to real estate consultancy firm CBRE. The city’s rise in flexible office space highlights the increasing importance of flexibility and cost-efficiency for businesses navigating the dynamic and uncertain business landscape.
Bangalore continues to hold the top position among 20 major APAC cities with the highest flexible office stock. Hyderabad and Mumbai also made it to the list, showcasing the growing demand for flexible office solutions in India.
As of March 2023, Bangalore recorded the highest flexible stock of 12.9 million square feet, outpacing other major APAC cities. Moreover, both Delhi NCR and Bangalore witnessed the addition of a combined 3.1 million square feet of flexible office space in the first quarter of 2023.
The report by CBRE highlights the stable growth of the Asia-Pacific flex space market, with the total volume of flexible office space in the region reaching 87 million square feet by March 2023, marking a 6% increase from September 2022. The APAC region is now home to approximately 3,000 flex space centers.
Technology firms accounted for the largest portion of leasing activity at 35%, followed by business services, finance firms, retail firms, and life sciences. The demand for flexible office solutions reflects businesses’ recognition of the value of portfolio flexibility and cost management in an environment of ongoing economic uncertainty.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, emphasizes that businesses are increasingly seeking agility and cost-effective options, resulting in a heightened demand for flexible office solutions.
The report also highlights some additional trends in the flexible office market. There is a preference for dedicated spaces such as enterprise solutions due to concerns about capital expenditure. There is also a significant demand for event spaces and access passes, reflecting the priorities and preferences of occupiers in the flexible office market.
CBRE’s study covered 20 major Asia-Pacific markets, including Japan, China, South Korea, Philippines, Hong Kong, Australia, Vietnam, Singapore, Australia, Taiwan, New Zealand, and India.
The growing popularity of flexible office spaces in Delhi-NCR, along with Bangalore’s consistent dominance in the APAC region, demonstrates the increasing need for businesses to have flexible and cost-effective office solutions. As companies continue to navigate an uncertain business landscape, the flexibility provided by these spaces allows them to adapt and thrive in ever-changing circumstances. With the demand for flexible office spaces expected to continue growing, Delhi-NCR and Bangalore are likely to see accelerated new flex center openings in the coming months.
