ANI New Delhi

India's co-working or flexible office or supply will increase at a significant Compound annual growth rate (CAGR) of 21-22 per cent during Financial Year (FY) 2025 FY27 and reach 125 million square feet (msf) by March 2027 for the top six cities, according to a report by ICRA.

Cities such as Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR) and Pune will witness this significant growth, added the report. The report added that the sector will surpass Rs 600 billion in value by March 2027.

This segment, which has seen one successful initial public offer (IPO) in 2024, is set to witness five major IPOs in the next 12-18 months, which are projected to raise over Rs. 7,000 crore, added the report.

Giving more insight, Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA, said, "The flex office supply for top six cities has more than doubled to over 67 msf as of March 2024 from 32 msf as of March 2020."  "The demand for such spaces has increased at a brisk pace -driven by flexibility, short-lease tenures and lower upfront cost in terms of capex for tenants. The share of flex workspaces in the commercial office segment (non-SEZ) is expected to double to 12.5-13.5 per cent in FY2027 from 5.3 per cent in FY2020," she said.