As corporates continue to evaluate flexible space combinations in India, operators in this segment continue to expand their footprint across the country. India is today one of the biggest flexible space markets in APAC and will continue to go from strength to strength. This is the second report in our quarterly research series covering trends in the flexible space segment:
- Operators leased about 4.6 million sq. ft. of space in H1 2019, an increase of about 52% on a y-o-y basis.
- Bangalore, Delhi-NCR and Hyderabad were the most preferred markets, accounting for more than 60% of the leasing in this segment in H1 2019.
- Hybrid and managed spaces continued to dominate pure play co-working spaces and business centers, commanding shares of 43% and 31% in overall space take-up.
- Investors remain bullish on this sector as occupancy levels remain healthy, operators continue to lease large-sized spaces (>100,000 sq. ft.) and move beyond the top cities to cover other major markets and tier II cities as well.