Co-working operators leased 10.8 million sq ft area during 2019, up 26 per cent from the previous year, taking the total stock under flexible work space to 30 million sq ft in the country, according to property consultant CBRE. CBRE on Wednesday released its report 'India Flexible Space Digest – 2019' which suggested that demand for flexible workspace would continue this year and leasing could touch 10-12 million sq ft. The flexible space leasing touched 10.8 million sq ft in 2019, CBRE said, adding that Bengaluru and Hyderabad accounted for about half of the flexible space take-up in India.
The overall stock in flexible space market rose about 60 per cent from about 19 million sq ft in 2018 to touch 30 million sq ft in 2019. "In today's dynamic and technology driven business environment, corporates are beginning to explore various workplace solutions which could result in capex reduction and increased agility of their RE portfolio in the sector," Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE, said.
He expects the demand to remain steady with an overall stock of flexible space anticipated to cross 40 million sq ft by the end of 2020. The report highlighted that flexible space leasing in 2019 was dominated by hybrid spaces and managed space (77 per cent) followed by co-working and business centres (23 per cent).
Co-working segment saw an increased inflow of funds in 2019, with about $140 million of funding provided by angel investors / PE funds / debt funds.
Ram Chandnani, Managing Director, Advisory and Transaction Services India, CBRE South Asia, said: “Going forward, the overall share of office space leasing is expected to increase from about 14 per cent in 2019 to 16-20 per cent in 2020 and touch about 10-12 million sq ft."