Bengaluru has emerged as the top city in the Asia Pacific (APAC) region for flexible office space, boasting a total stock of 15.5 million square feet as of the first half of 2024, according to a report by CBRE. This achievement places Bengaluru ahead of major cities such as Shanghai, Seoul, and Tokyo, solidifying its position as a key hub for flexible workspaces in the region.
Delhi-NCR ranks second on the list with a total of 10.7 million square feet of flexible office space. The report highlights that the rapid growth in the APAC flexible office space market has been largely driven by Indian cities, where the demand for managed workspace solutions is on the rise, thanks to domestic operators.
Flexible workspaces include co-working offices and managed working spaces provided on demand, on a short to medium term basis, based on the needs of a business.
The Delhi-NCR area witnessed a significant 26% increase in its flexible office stock since the calendar year 2023, the highest growth rate among the surveyed cities. Other Indian cities making it to the top 10 include Hyderabad, with 6.8 million square feet, and Mumbai, with 6.1 million square feet of flexible office stock.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East, and Africa at CBRE, commented, “The ongoing expansion of the flexible office space market in India highlights its significance as a strategic option for businesses adapting to the changing demands of workspace needs.”
The report also noted that the total stock of flexible office space across the APAC region reached 89 million square feet by June 2024, marking a 3.9% increase from the previous year. With approximately 3,000 flex space centers across the region, the strong leasing activity by flex space operators suggests that the pace of new center openings will remain brisk for the remainder of the year.
Despite the return to growth following the pandemic, the APAC flexible office space market is now experiencing a period of normalized expansion, a shift from the rapid growth observed in the pre-COVID years.