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Bengaluru no. 1 city across APAC in flexible office space stock; Delhi-NCR 3rd: CBRE
Bengaluru retained the top spot in the Asia Pacific for flexible office space, while Delhi-NCR has become the third largest city, beating Beijing and Seoul.
Delhi-NCR has emerged as the third biggest city in the Asia Pacific in having flexible office space stock beating Beijing and Seoul, while Bengaluru has retained the top spot, according to real estate consultant CBRE.
In its report, 'H1 2023 Asia Pacific Flexible Office Market', CBRE mentioned that Delhi-NCR emerged as 3rd largest city among the 20 Asia-Pacific region (APAC) cities with a flexible office stock of 8.4 million square feet.
Bengaluru continues to top the list of APAC cities, having the highest flexible stock of 12.9 million square feet as of March 2023, followed by Shanghai at 10 million square feet.
Delhi-NCR overtook Beijing and Seoul in (Grade A) flexible office stock in the APAC region to become the third largest city in flexible office space stock.
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The other Indian cities that made it to the top 10 were Hyderabad and Mumbai, with 6 million square feet and 4.7 million square feet of flexible office stock, respectively. Hyderabad is at 7th place while Mumbai is at 9th.
"In an environment of ongoing economic uncertainty, businesses are recognising the value of portfolio flexibility and cost management. This has resulted in a heightened demand for flexible office solutions as occupiers seek agility and cost-effective options," Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa at CBRE, said.
The continued growth of the flex space market underscores its importance as a strategic choice for businesses navigating the evolving landscape of workspace requirements, Magazine added.
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Beijing is at 4th position with 7.5 million square feet stock, followed by Seoul (6.5 million square feet), Tokyo (6.5 million square feet), Hyderabad (6 million square feet), Shenzhen (5.6 million square feet), Mumbai (4.7 million square feet), Singapore (4 million square feet), Hong Kong (2.8 million square feet), Sydney (1.8 million square feet) and Manila (1.1 million square feet).
In India, WeWork India, Smartworks, Simpliwork Offices, Awfis, Skootr, The Executive Centre, Urban Vault, IndiQube, 91Springboard, Incuspaze, 315Work Avenue, The Office Pass, Avanta India, BHIVE Workspace, Akasa Coworking and Enzyme Office Spaces are major players that provide co-working/managed office space.
Mukul Sharma - Head Corporate Leasing, Advance India Projects Ltd (AIPL), said cities like Gurugram, Bengaluru, Hyderabad, Chennai and others are witnessing a strong demand for Grade A office spaces that exceed the current supply.
"Flexibility to scale up and scale down business, saving of capital expenditure and avoiding hassles to manage real estate are major considerations for corporates while choosing co-working space, Amal Mishra, Co-founder of Urban Vault, a Bengaluru based managed co-working space provider, said.
