NEW DELHI: With major companies and other businesses opting for co-working, demand for flexible office spaces has hit a new high, as per latest data from ANAROCK Property Consultants.
Out of a net absorption of around 20.8 million square feet across the top seven cities in the first half (H1) of 2022, the share of co-working spaces stood at 20%. This was only 6% out of net office absorption of 9.33 million square feet in H1 of 2021.
Sector-wise, the share of IT and ITeS sector, the country’s leading office demand driver, declined from 49% in H1 2021 to 36% in H2 2022. This, according to ANAROCK Property Consultants was largely due to many IT companies preferring flexible spaces to regular office spaces. In terms of net absorption across the top 7 cities in H1 2022, Bengaluru and Hyderabad remained on top, comprising 50% of total demand share. Bengaluru, Hyderabad and Chennai, together witnessed net office absorption of around 12.2 million square feet. Of this, 18% or 2.23 million square feet was by co-working players.
Anuj Puri, Chairman ANAROCK Group, said, “Co-working has received a major boost after Covid-19 disrupted the previous status quo. A major factor driving demand is that these spaces are not concentrated in just the city centres or major employment hubs; they’re spread across different areas. Co-working spaces are now also operating out of malls and hotels across cities. Many large office parks are also housing co-working spaces."