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Hyderabad houses 4.5 million sq ft of flexible space

Friday, 27 Nov 2020
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Hyderabad hosts 4.5 million sq ft of the total flexible space stock in the country and is one among the fastest growing markets. 
As per the report by JLL, Reimagine Flexspaces A 360° view, the demand for flexible spaces in large cities such as Hyderabad in Telangana is likely to grow, with businesses having a greater need to accommodate portfolio expansion and contraction along with crisis support. 
The Flex space operators provided organised workspaces with a lock-in-period of one to two years. Companies that have pre-leased with scheduled delivery over the next one to two years have shown interest in such flex spaces to have their temporary offices. 
Apart from big multinational corporations (MNCs), Hyderabad also houses start-ups and small companies in the field of consulting, IT and logistics. 
The Hyderabad office market witnessed strong signs of recovery in Q3/2020 with a gross leasing at 1.9 million sq ft. The net absorption grew by 31 percent from Q2/2020 to 1.5 million sqft in Q3/2020. 
The country is expected to witness deeper penetration, throughout 2021 and beyond, the flex space market is forecast to grow at a slower pace and more organically. Irrespective of several short-term disruptions and challenges, increased demand from large enterprises, will support the growth of the flex space market to more than 50 million sqft by 2023.
It is expected that flexible space will grow by an average of around 15-20 percent per annum over the next three to four years, although this trajectory will not be linear. Developments that initially drove the growth of the flex market, such as the focus on utilising workplaces to boost productivity and drive dynamic work cultures, enhance emphasis on employee health, etc will continue to influence the next phase in India.
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