Flexible office space operators attract US$ 820 million PE funding since 2017: Knight Frank

According to Knight Frank, flexible office space operators in India have received private equity funding worth US$ 820 million since 2017, driven by increasing corporate demand. The report highlighted significant fluctuations in PE investments in the flexible office space sector. Investments grew steadily from US$ 25 million in 2017 to US$ 49 million in 2018, surging to US$ 113 million in 2019 with key investors like CLSA Capital and Peak XV Partners. However, funding dropped to US$ 11 million in 2020 and US$ 6 million in 2021 due to Covid-19. A resurgence in 2022 saw investments peak at US$ 595 million, supported by deals from Hillhouse Capital and Actis, before declining again to US$ 13 million. In 2024, 1 deal secured US$ 8 million.

The report also noted that flex-space operators leased an estimated 52.9 million sq. ft from 2017 to the first half of 2024, registering a strong CAGR of 22%. Chairman and Managing Director of Knight Frank India, Mr. Shishir Baijal, commented on India’s dynamic commercial real estate market, stating that its resilience and forward momentum are evident, supported by GDP growth projections for FY25, reaffirming India as the fastest-growing major economy. He added that occupiers focus on employee well-being, and flexible office operators are well-positioned to meet these demands. By embracing ESG principles and cutting-edge technology, Baijal said, the flexible space sector is not just keeping pace but setting the future agenda for workspaces.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.