The flexible workspace segment expects a rise of 10-15% in rentals in the year 2024

New Delhi, 4th March 2024: The COVID-19 pandemic has significantly impacted our approach to work, resulting in a tectonic shift towards hybrid, remote, and flexible work arrangements. After three years, phrases like "Work From Office," "Return to Office," "Hybrid Working," and "Flexible Working" surfaced, signifying a shift towards a return to office tendencies that combine remote and on-site working arrangements. Top IT companies like - WIPRO, TCS, Tech Mahindra, Infosys are a testimony to Return to Office shift.

"2024 brings with it newfound enthusiasm and an evolving work environment. As we navigate this dynamic landscape, it's crucial to understand the significant changes post-COVID-19," says Paras Arora, Founder & CEO of Qdesq and a prominent thought leader in the commercial real estate industry. "The Flex Predictions for 2024 shed light on the evolving patterns in working spaces, reflecting the shifting paradigms of how we work and collaborate. Return to office trends have impacted businesses of all sizes, resulting in the adoption of hybrid, work from office (WFO) and flexible working arrangements."

The Flex Predictions for 2024 highlight significant factors influencing the workspace industry:

Prediction 1:- A major shift in the workspace industry is expected, and Paras Arora's first projection for 2024 highlights a rise in supply, especially in Tier 1, 2, and 3 cities.

According to the estimates, The roll out of Enterprise and managed offices' will be concentrated in the metros and top commercial micro-markets within the metros. The local as well as established coworking brands would grow in the metros as well as the non-metros this year.

Coworking and managed office operators will have the confidence to build speculative assets and products backed by solid occupier demand data and trends around the affordable segment. As per the Qdesq platform, there has been a 12% increment in number of centres in the last years. By December 2024, we are looking at a 25% increase in the inventory, and every 7 out 10 domestic and global operators will be expanding this year and will focus on Non-Metros.

In line with a bigger asset strategy, operators are poised to target more extensive markets and economies of scale, leasing out large standalone campuses to multiple occupants. Industry leaders such as Skootr, Awfis, Smartworks, Incuspaze, Indiqube, and others are at the forefront of this approach, providing competitive and flexible office solutions within the same campus.

Prediction 2: All About Occupiers

Better facilities, compliance assets, flexibility, and shorter lease terms are what occupiers will desire. With an average lock-in period of 36 months or less, the corporate offices will lean towards shorter leases, fitted-out spaces, or privately managed spaces. Demand for coworking spaces, hybrid usage, tenant retention, and happiness are essential success criteria. A few more critical metrics on a power play will be – The occupier retention and satisfaction.

Prediction 3: Flex Pricing

The operators will lean towards an increase in the ROI and profitability. Hence, the flexible workspace market is predicted to witness a 10-15% increase per desk cost. The cost will be justified by increased demand brought on by the implementation of the "return to office" policy, taking into account factors like location, brand exposure, design standards, accessibility, security, and technological infrastructure.

Prediction 4: India's Growth Story and Global Interest

India's robust economic growth makes it a profitable destination for international operators. With a 7.2% growth rate, India tops the list for flexible workspace demand in the APAC region, per World Bank Data. International operators may enter organically, inorganically, or through partnerships, contributing to India's position as the most versatile country in the global commercial real estate map.

As per the projections, the flexible workspace market's future appears promising with a focus on the sector's steady expansion. Back-to-back solutions with Landlords, enterprise solutions, or the basic letting of managed offices, on-demand in one city or multiple cities are all available. We continue to see demand and healthy supply this year.

Company :-Media Mantra

User :- Ashwini Kasana

Email :-ashwini.kasana@mediamantra.in