‘Flex seat enquiries up 17% Y-o-Y in Tier II cities’
Start-ups, SMEs and companies in the fintech and e-commerce segments focusing on emerging economic centres and smaller towns for business growth and enterprises looking to tap into the talent pool of an increasingly mobile workforce are the mainstays of this rise in enquiries for flex seats in Tier II cities as per the report.
Chandigarh, Indore and Lucknow are seeing robust traction for flex enquiries. In fact, there is good traction across major Tier II cities in the North, West and South.
The key factors driving the market growth are increasing work flexibility and remote work culture, growing freelancers’ population and increasing demand for shared office spaces. However, lack of awareness about coworking spaces among small businesses is restraining the market growth.
Amid the Covid-19 pandemic, the demand for flex seats has been growing strongly. The total gross office space leasing across eight major cities stood at 52.6 million square feet, while the net office space leasing was 21 million square feet during the last year. The new supply of office space stood at 38 million square feet.
A lot of small as well as large firms are popping up right now, and they are looking forward to co-working office spaces. With cheap internet access, technology is developing by huge strides, there is nothing permanent when it comes to workplace space. Most businesses are attempting to keep things more compact, rather than occupying a large leased area for a decade or more. Companies consider obtaining aesthetically pleasing co-working work spaces ideal for high-end client meetings. In India, there is an increasing need for Managed Work Spaces. This is another important reason why the number of flexible spaces in India is expected to double by 2025.
Coworking operators sold over 55,000 seats in 2021, up from 36,000 seats in 2020, according to property experts, and they expect sales to double in 2022.
In the last 18 months, the pandemic has not only redesigned the entire coworking ecosystem but has also encouraged real estate developers to join hands with coworking operators to create such special spaces.
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According to a Cushman & Wakefield report, coworking operators expanded their portfolio aggressively last year and took on lease 21 per cent more office area – 4.91 million square feet in 2021 from 4.05 million square feet in the previous year – across the top eight cities of Bengaluru, Hyderabad, Pune, Mumbai, Delhi-NCR, Chennai, Kolkata, Ahmedabad to meet the rising demand for flexible workspaces from corporates amid the pandemic.
Demand for co-working office space jumped over two-fold in the last fiscal year at 90,200 desks across seven major cities as flexible workspaces rose in prominence after 2nd wave of the pandemic.
There is a strong demand for co-working spaces and this has pushed co-working businesses to launch more centres in metropolises and other demand generating areas. Today, co-working spaces have become the most sought-after assets and their share in office leasing is anticipated to rise from a mere 2% in 2010 to 13% by 2024.
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