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Flexible office space leasing in India touched 4.6 million sq ft in H1 2019 across seven major cities

Bengaluru accounted for almost 30 percent of the total leasing by flexible space operators, says a report

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Leasing of flexible office space in India touched about 4.6 million sq ft in the first half of 2019 across seven major cities. During this period, Bengaluru accounted for almost 30 percent of the total leasing by flexible space operators, says a report.

The leasing of office space by flexi-space operators stood at 3 million sq ft from January-June 2018, and 8.3 million sq ft for full last year across seven cities namely Delhi-NCR, Bengaluru, Mumbai, Chennai, Hyderabad, Kolkata and Pune.

Hybrid and managed spaces drove the leasing for flexible space. The demand for managed office spaces will strengthen in the coming few quarters and become almost comparable to that of hybrid spaces. This segment will remain high on the investors’ radar, a report by CBRE South Asia said

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Titled 'India Flexible Space Digest – H1 2019', the consultant also highlighted that co-working operators are now also focusing on tier-II cities such as Jaipur, Chandigarh, Lucknow, and Goa.

The stock for flexible space crossed 50 million sq. ft. across leading cities in the Asia Pacific region (APAC) during the first quarter of 2019. In India, this stock exceeded 20 million sq ft, the report said.

The number of small to medium-sized deals (20,000 - 100,000 sq ft) rose from 52 percent in the first half of 2018 to 61 percent in the first half of 2019. Moreover, the number of large-sized deals (exceeding 100,000 sq ft) increased from 6 percent to 13 percent year-on-year in the first half of 2019, the report said.

CBRE expects operators to continue taking up large sized spaces (> 100,000 sq ft) across cities, moving beyond the top cities to cover other major markets and tier II cities as well. This will continue to strengthen the overall space take-up.

“India is currently one of the leading flexible space markets in APAC, and we expect increasing investments in this segment going forward. Office stock is expected to grow from 600 mn sq ft in mid-2019 to a billion sq ft by end of 2030, and flexible space will comprise 8-10 percent of the total office stock,” said Anshuman Magazine, chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.

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First Published on Aug 22, 2019 07:56 pm
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