A new survey by CBRE South Asia reveals that 58% of companies are expected to have over 10% of their office portfolio in flexible workspace by 2026, up from 42% in Q1 2024. The ‘2024 India Office Occupier Survey’ highlights a growing trend towards flexible office spaces in India’s corporate landscape.
About 30% of occupiers plan to increase their use of flexible office space as their primary portfolio strategy in the next 12 months. Domestic occupiers showed a higher preference for flexible workspaces compared to American corporations.
“The robust surge in occupier activity within the Indian office sector, highlighted by 2023’s absorption figures, which are the second highest ever recorded, underscores a remarkable trend,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.
The survey also found that 70% of occupiers intend to increase their overall office portfolio size over the next two years. And 73% of domestic corporations and 78% of global firms anticipate a portfolio expansion of 10% or more during this period.
Sector-specific expansion plans vary, with 88% of BFSI firms, 67% of GCC firms, and 53% of technology firms planning to increase their office portfolios by over 10% in the next two years.
Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, noted, “The survey highlights a clear preference for ‘office-first’ policies, reflecting an accelerated return to in-office attendance.”
The survey revealed a strong emphasis on in-office work, with 90% of respondents preferring to be in the office for at least three days a week. Many favour full-time office work.
Sustainability and employee well-being are becoming increasingly important. About 67% of occupiers indicated they would allocate 5% or more of their project budget towards ESG implementation.
The survey also highlighted a trend towards expansion in Tier-II and Tier-III cities, with technology and BFSI firms leading this shift. Domestic firms showed a preference for these cities for expansion in the next one to three years.
While major cities like Bangalore, Hyderabad, NCR, and Mumbai remain popular, occupiers are particularly interested in expanding in Chennai and Pune.
CBRE expects flexible space stock to reach 80 million sq ft by the end of 2024, reflecting the growing appetite for flexible workspaces among occupiers.