Bengaluru has topped the Grade-A flexible stock list of 12 Asia-Pacific region (APAC) cities, according to CBRE.
As of September 2022, Bengaluru recorded 10.6 million sq. ft. (Grade-A assets) flexible stock.
Other than Bengaluru, two other Indian regions, Delhi-NCR and Hyderabad, also accounted for the highest volume of flexible stock in the APAC region.
As of September 2022, Delhi-NCR recorded 6.6 million sq. ft. of flexible stock in Grade-A assets, followed by Hyderabad, with a stock of 5.7 million sq. ft.
In the Grade-A segment, India and Singapore reported the highest penetration of flexible office space compared to other Asian nations. Hyderabad recorded the highest penetration with 5.5 percent, followed by Bengaluru at 5.4 percent, Singapore at 4.6 percent, and Delhi-NCR at 4.4 percent.
The report also observed that post-pandemic, India continues to witness the highest growth in flexi–office market in the APAC region.
The report highlights the total flexible stock volume in the APAC region stood at 76 million sq. ft., recording a 6 percent y-o-y growth and is 15 percent above the pre-pandemic growth level during the Jan-Sep 2022 period.
During this period, the total nos. of flexible space centres in APAC stood at around 3000. Tech firms (36%) and business services (28%) companies remain the top users of flexible office space, followed by finance, life sciences firms, and retail firms in the overall APAC flex market.
“India is leading the flexible A- grade office stock in the APAC region. Occupiers are largely re-engineering their portfolio and workplace strategies to accommodate hybrid working arrangements. This signals a healthy office sector growth amid an accelerated return to office phenomena in India, led by flexible space operators," said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.
"It is also noteworthy that Bengaluru, Delhi-NCR, and Hyderabad account for nearly 35 percent of the total flex stock (A Grade) in the APAC region, with Bengaluru recording the highest flexible stock ahead of Asian cities,” “The flex industry matured over the past two years,” said Henry Chin, Global Head of Investor Thought Leadership and Head of Research, CBRE APAC.
“As we approach the new year, companies that continue to adopt flex spaces would be better positioned to embrace hybrid working arrangements, support their employees, and remain agile in their real estate strategies. Additionally, with companies being able to compare and opt for a variety of flex options, operators have identified and are expanding into secondary markets.”
CBRE APAC study covered 19 major Asia-Pacific markets, including Japan, China, South Korea, Philippines, Hong Kong, Australia, Singapore, and India.
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