Driven by healthy investment and robust demand from technology and other mainstream sectors, Pune’s flex space stock is expected to cross 8 million sq feet by 2025, accounting for 10 per cent of the total office stock of the city, according to Colliers’ latest report ‘Pune–Tech-tonic shift to flex’.
Pune’s flex space market has seen significant growth during the last five years, led by a burgeoning young population, presence of large tech corporates, and proliferation of start-ups. Occupiers’ hybrid workstyles have further accelerated the demand for flex spaces in the city, especially post-pandemic.
Since 2018, Pune’s flex stock has witnessed a four-fold rise and currently stands at 5.4 million square feet as of June 2023. This translates to 8.3 per cent of the city’s Grade A office space, the highest across the top 6 cities.
While Bengaluru remains the largest flex space market Pan India in terms of size of flex stock, Pune has surpassed Bengaluru in flex space penetration, at 8.3 per cent.
Also read: Share of flex space in corporates’ real estate portfolio rises to 10-12% from 5-8% pre-Covid
Flex spaces have been at the forefront in enabling new workspace models such as Flex + Core, distributed workplace strategy and Hybrid working for occupiers, becoming an integral part of occupiers’ portfolio. At an all-India level, share of flex space in occupiers’ portfolio has risen, from 5-8 per cent in 2019, to 10-12 per cent in 2023.
“Pune has emerged as one of the popular top flex space destinations Pan India, registering a significant growth in the last 5 years. Share of Pune in Pan India flex leasing has increased manifold from 5 per cent in 2018 to 25 per cent in 2022. With the enterprise outsourcing is becoming mainstream, flex spaces in the city are also seeing increased occupancy levels,” Animesh Tripathi, Managing Director, Pune, Colliers India, said.