According to Colliers Report, a real estate consultancy firm, Pune’s flex space penetration has overtaken Bengaluru’s at 8.3 percent and is anticipated to cross 8 million sq. ft. by 2025. Over the past five years, the need for flexible space in Pune has significantly increased, driven by the presence of large multinational corporations, young adults entering the workforce, and several startups growing their customer bases.
Pune’s flex stock has increased fourfold since 2018 and will reach 5.4 million square feet as of June 2023, according to Colliers India. Pune’s participation in Pan-India flex leasing has grown from 5 percent in 2018 to 25 percent in 2022. Due to the widespread adoption of enterprise outsourcing, there has been an increase in occupancy in the city’s flexible spaces. Flex rooms will maintain their significance in the next few years as cost reduction, scalability, and flexibility are still essential criteria for office expansion.
Bangalore, with a 7.3 percent penetration, has the second-largest flex space penetration after Pune. With 43 percent of all seats occupied in Pune’s flex spaces between 2020 and H1 2023, the tech sector is the largest tenant.
Seventy-five percent of Pune’s total flexible stock is held by Baner-Balewadi and CBD, while Viman Nagar and Kharadi have not yet experienced growth.
