The Market for Flexible Office Space Is Expected to Increase by 60% This Fiscal to Over Rs 14,000 Crore: Report on Upflex India

According to research by Upflex India, the size of the Indian market for flexible office space is predicted to expand by 60% to exceed Rs 14,000 crore in this fiscal year as a result of operators’ increasing desk-rent prices and portfolio growth. “Co-Working and Managed Offices Redefining the Indian Commercial Real Estate” is the title of the first study published by Upflex India, a marketplace for flexible workplaces. In 2021, American real estate advisor Anarock introduced Upflex to India.

The survey estimates that the annual co-working market size in terms of rental revenue would increase from Rs 8,903 crore to Rs 14,227 crore this fiscal year. The overall number of operators offering flexible workspaces has grown from 10.4 lakh in 2022–2023 to 12.66 lakh. The portfolio’s total area has increased from 47 lakh square feet to 57 lakh square feet.

According to Upflex statistics, the average monthly cost per seat has grown from Rs 9,200 per desk to Rs 10,400. From 75% to 90% occupancy, the percentage has climbed. Karan Virwani, CEO of WeWork India, published the study.

“India’s commercial real estate has undergone a significant transformation in the last few years, and flex spaces have been essential to this enormous change.” Due in large part to the development of hybrid work arrangements, the contemporary workforce is becoming more mobile, which is driving up demand for flexible workplaces, according to Virwani. Prior to the COVID outbreak, there were around 400+ operators with 1,500+ sites in roughly 55 cities, according to Upflex India CEO Pratyush Pandey.

He said, “At the moment, there are roughly 965+ operators in roughly 2,320 locations in roughly 90 cities.” It’s encouraging to see India leading the way in adopting flexible workplaces as we negotiate the changing nature of work. The epidemic has highlighted the adaptability of our workers and the need for flexible work settings, according to Pandey.

According to him, the increased demand for hybrid working from huge corporations and corporations is driving up market growth. “Businesses are purposefully not investing in large spaces on their own because they can save money and have more flexibility by contacting managed office solution providers,” according to Pandey.

According to Upflex, as of June 2023, the co-working sector accounted for 19% of total commercial office leases. By the end of this fiscal year, the percentage is expected to rise to 25–27%. The research said that this exponential increase is not limited to metro areas but is also affecting Tier 2 and Tier 3 cities.