Corporates’ continued interest in evaluating the ‘core+flexi’ option as part of their RE portfolios has accelerated the growth of flexible space operators in India. This has resulted in the overall flexible space stock increasing by about 60%, from around 19 million sq. ft. in 2018 to 30 million sq. ft. in 2019.
This report outlines the outlook for the flexible space segment for 2020 from the perspective of both occupiers and landlords, in addition to providing the highlights of the trends witnessed in 2019:
- The overall flexible space take-up touched about 10.8 million sq. ft. in 2019, an increase of about 26% on an annual basis.
- Bangalore dominated the flexible space stock in India, followed by Delhi-NCR and Mumbai.
- Bangalore and Hyderabad accounted for about half of the flexible space take-up during the year.
- The year saw increased inflow of funds in this segment, with about USD 140 million of funding being provided by angel investors, PE funds and debt funds.