India's adaptable office segment will expand by 10-12% in 2023: Colliers

By siliconindia  |  Tuesday, 30 May 2023, 04:49:59 PM IST

India's adaptable office segment will expand by 10-12% in 2023: Colliers
India’s flexible office section is expected to witness additional expansion, with occupiers quick to accept flex spaces, attracted by their flexibility, agility and cost-effectiveness, even as occupiers in the Asia Pacific are grappling with the complexities of the hybrid work model which remains inconsistent across markets and industries.
In India, flexible spaces are becoming an integral part of occupiers’ portfolio and their share is estimated to increase to 10-12% in 2023, from 5-8% before the Covid-19 pandemic in 2019, according to industry experts.
“The APAC region is undergoing a significant transformation in the way workspaces are perceived and utilised,” said Sam Harvey-Jones, chief operating officer, Colliers. “While challenges persist, this period of change presents unprecedented opportunities to reimagine the role of space and explore new approaches that cater to evolving employee needs. The research finds APAC occupiers are shifting from an ‘inward’ business view of what’s important in an office or location, to an ‘external’ view of what locations gives their employees access to in terms of culture, lifestyle and wellness.”
According to Colliers, companies across the Asia Pacific region are facing the dilemma of striking a balance between providing employees with desired flexibility and realigning their portfolios for the next evolution of the workplace. Consequently, many businesses are deferring decisions on office take-up and investment, said a Colliers report.
“India is consistent with the rest of the Asia Pacific region with 10-12% of occupier portfolios utilising flex space,” said Mike Davis, managing director, Occupier Services, Asia Pacific, Colliers. “Singapore, India, and Australia are adopting flex space the most within the Asia Pacific. Also, adopting technology solutions such as digital tools and dashboards is critical for addressing the challenges posed by the hybrid workforce.”
The report said the lack of clarity and macroeconomic uncertainty are posing challenges for businesses in projecting their space requirements.
“Sales and marketing organisations have been the biggest adopters of flex space in their portfolios with the tech sector right behind. However, the tech sector is rapidly growing, particularly in India. Tech companies typically have a need for ‘dedicated’ flex space due to the needs for their IT requirements,” said David.
In the first quarter of 2023, India’s flex space penetration stood at 6.5% and continued to expand, led by occupiers’ rapid adoption of hybrid and decentralised work strategy in a bid to build new age workspaces at an optimal cost. Other markets in the APAC region have seen slower growth, with flex space penetration hovering around 2-4%.
“Flex spaces have emerged as a core strategy for occupiers to adopt a decentralised workspace model, serving as a promising alternative to the traditional paradigm,” said Peush Jain, managing director, Office Services, India, Colliers.

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