Office Space Demand Surges in India’s Metro Cities ; Co-Working Spaces Thrive

In the first quarter of this year, the demand for office spaces has seen a significant rise in eight major cities across India. According to a recent report by Knight Frank India, co-working or flex spaces have soared to 23 per cent of total office space transactions. Leading the surge is Pune, with transactions totalling 1.2 lakh square feet in flex space, followed closely by Bangalore with nine lakh square feet of transactions.

From January to March, 1 crore 62 lakh square feet of office space were transacted, which is a 43% increase compared to last year.

Major contributors to office space transactions are the Indian offices of multinational corporations (MNCs), with global facilities comprising the largest share at 59 lakh square feet, followed by Indian facilities at 50 lakh square feet. Co-working spaces also saw a significant boost, accounting for 38 lakh square feet, a stark contrast to 3.4 lakh square feet in the same quarter last year.

With many small companies and startups unable to afford dedicated office spaces, the concept of shared office spaces is gaining traction. This allows multiple businesses to share a common workspace and facilities, resulting in cost savings.

The breakdown of co-working space transactions in million square feet includes Pune at 12, Bangalore at 9, Delhi at 8, Mumbai and Ahmedabad at 3 each, and Hyderabad and Chennai at 2 each, totalling 38 million square feet.

The surge in demand for office spaces is attributed to the country’s economic stability and growing business opportunities, prompting many companies to expand their operations. This upward trend reflects the increasing preference for co-working spaces among businesses.