Flexible workspaces are the preferred way to adopt the hybrid work model in a post-pandemic world, compared to options like changing existing office layouts or the hub-and-spoke model, which will, among other factors, potentially double the market size of coworking spaces over the next five years at a compound annual growth rate (CAGR) of 15 per cent, revealed the latest CII-ANAROCK report 'Workplaces of the Future.'
As per the report, currently, approx. 35 million square feet of flexible office stock is available across the country. Of this, approx. 71 per cent or 25 million square feet is by the large operators. Approx. 3.7 lakh Flexi seats are currently spread across the major Tier I and Tier II cities of India. A survey conducted by ANAROCK via LinkedIn further validated the emergence of the hybrid work model as the future of Indian offices. 65 per cent of respondents were convinced of the high potential of hybrid or remote working in India, while just 35 per cent did not favour these models. Anuj Puri, Chairman - CII Roundtable on Future Workplaces and Chairman - ANAROCK Group, said, "A work-from-anywhere future requires significant preparations and technological support. On the other hand, the hybrid work model benefits both employers and employees - including via cost savings which by themselves justify taking the hybrid model very seriously.""India is at the cusp of a co-working revolution with several large players operating across the country. Not just existing coworking players but also new operators have major future expansion plans. For instance, coworking player Smartworks plans approx. 20 million square feet of coworking space comprising approx. 2.5 lakh seats over the next 3-4 years," he added.
As per the report, the rapid expansion plans by these major coworking players, and the pandemic-triggered need to re-strategize workspaces, indicate a bright future for this new asset class. Companies returning to offices will have to consider leveraging Flexi spaces to reduce cost and expenditure, and this will boost the demand for such spaces, it added.
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