The flexible office space market is booming in our country. Upflex India estimates that it will reach Rs. 14,000 crore with a growth of 60 percent in this financial year. The annual rental income of flexible office space was Rs 8,903 crore in 2022–23 and will increase to Rs 14,227 crore in 2023–24. The number of operators providing services in this segment was 10.4 lakh at the end of the last financial year and will increase to 12.66 lakh at the end of the current financial year. The flexible office space will expand from 47 lakh square feet to 57 lakh square feet.
The monthly average rent per desk in flexible office space has increased from Rs. 9,200 to Rs. 10,400. Also, the occupancy rate has improved from 75 percent to 90 percent. It explained that the demand for flexible workplaces is increasing in the wake of the implementation of hybrid work practices. Before COVID, there were more than 400 operators working in more than 1500 locations in 55 cities. Now there are more than 965 flexible office space operators operating in 2,320 locations across 90 cities. The report predicts that this market will further expand in the future due to the high demand for hybrid work systems from large corporations and organisations. Coworking will account for 19 percent of the country’s commercial office leasing by June 2023, Upflex said. It said it will increase to 25–27 percent by the end of this financial year.
