Flex office space to reach 81 million sq ft by 2025: Vestian report

The report projected that the flexible office sector would constitute around 25 percent of the overall office space absorption by 2025, given that companies are continuing to offer the hybrid work model to employees.

According to a Vestian analysis, the inventory of flexible office space will increase by 52 percent to 81 million square feet (msf) by 2025 from 53.4 msf at present as operators expand their operations to meet the growing demand.

Over 7.6 lakh seats are available with flexible space operators dispersed over more than 1,000 venues in India, according to the report Flexing the Workspace-Back to Office.

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It was highlighted that in 2015–16, when the market was disorganised and fragmented, flexible spaces began to be adopted more widely in India. But since then, it has expanded quickly and organised itself better. According to Vestian, huge corporations as well as start-ups and SMEs are paying close attention to the flexible spaces.

When compared to other nations like the US and Europe, India’s flexible spaces industry remains in its infancy. According to Vestian CEO Shrinivas Rao, the Indian flex office space stock is expected to increase at a CAGR of 23% to 81 msf by 2025. Covid-19 catalysed the market expansion.

According to the survey, as more businesses use hybrid models, more workers will return to the office, increasing the demand for flexible spaces.

According to a forecast by Vestian, the flexible office market would account for about 25% of the total absorption of office space by 2025. Managed offices would be at the opposite end of the flexibility spectrum from coworking spaces, which are at the flexible end, it was said.

There are 50 significant flexible space operators, according to the research. 84 percent of the portfolio of flexible office space is held by the top 10 competitors.