SMART SPACES SMARTER CHOICES

FROM CUBICLES TO CO-WORKING: INDIA'S OFFICE SPACES ARE GETTING A MAKEOVER, BECOMING FLEXIBLE AND SMART

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India’s economic landscape is rapidly evolving, fuelled by strong domestic consumption, industrial expansion, and digital transformation. This growth has profound implications for various sectors, particularly commercial real estate, as India transitions into a digital economy, the demand for office spaces is increasing. Moreover, an interesting aspect of this entire value chain is that flexible workspaces are emerging as a fast-growing segment within commercial real estate.

ROBUST ECONOMIC GROWTH TO SUPPORT COMMERCIAL REAL ESTATE

India is one of the fastest-growing economies in the world. This growth is fuelled by strong domestic consumption, industrial expansion, continued infrastructure development, and supportive government policies. A growing economy is undoubtedly good news. As the country transitions to a more digital-focused economy, the demand for commercial real estate, particularly office space, is expected to rise, with flexible office solutions gaining prominence.

The demand for office spaces will largely be driven by sectors such as IT, medical (healthcare), engineering and manufacturing, banking, financial services, insurance (BFSI), and global capability centers (GCCs). Notably, industry estimates suggest that the engineering and manufacturing sectors are expected to lease 11 million square feet to 12 million square feet annually between 2025 and 2027, accounting for approximately 40% of the total office space demand.

INDIA'S SERVICES SECTOR AND THE GROWTH OF FLEXIBLE OFFICE SPACES