According to the report by Avendus Capital, the commercial real estate market of India is projected to experience a powerful adoption of flexible workspaces in the upcoming years as the flexible workspace is expected to increase up to 126 million square feet by the year 2028 & record a market value of about $9 billion by the same period.
A flexible or flex workspace is a completely furnished, services & managed office space providings offered by an end user or operator. Such kind of workspace can extensively be divided as either a managed office or co-working space or both.
The segment of flex workspace is projected to grow at a CAGR of about 15 percent over the next consecutive 5 years from about 61 million square feet which is up from 48 million square feet in the year 2022 & 29 million square feet from 2019, i.e. pre-covid year.
On such terms of value, the flexible workspace would increase from $3.5 billion. This development of office spaces is projected to reap the consideration & attention from all the investors under various categories such as real estate, private equity, growth capital, HNIs and family offices, structured credit & venture debt.
Speaking to this, the Managing Director & Head of infrastructure & Real Assets Investment Banking at Avendus Capital says, “The Indian office market has remained largely immune to global macro and sectorial headwinds. As more enterprises are experimenting with the remote workplace mechanism, we are seeing a broad shift towards flexible and modern office solutions”.
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