The survey pointed out that 56 per cent of the respondents intended to have more than 10 per cent of the total office portfolio as flexible spaces by 2025, indicating that flexible spaces will continue to be a key component of occupiers’ portfolios.
In line with the drive for portfolio optimisation and improved efficiencies, around 37 per cent of respondents indicated increasing consolidation to fewer locations.
The survey found that there is growing interest in tier-II cities due to skilled talent pools and improving infrastructure and 13 per cent of the respondents chose to relocate some functions to tier-II cities in Q1 (January-March) 2023 as compared to 8 per cent in December 2021.
India’s attractiveness to global corporates would continue in the medium to long term.
“Occupiers’ outlook in Q1 2023 towards long-term portfolio expansion remained positive, as 75 per cent of the respondents indicated that the size of their portfolios would increase over the next two years,” it said. Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa of CBRE, said, “Over the past year, we have witnessed a remarkable recovery in the Indian office sector, driven by pent-up demand and the swift implementation of return-to-office (RTO) plans by occupiers.” Despite the challenges posed by macroeconomic and geopolitical factors, the sector has shown resilience, he added.
“Looking ahead to 2023, we anticipate these challenges will persist, necessitating adaptability and strategic foresight,” Magazine said.
In terms of office portfolios, he said the survey reveals that occupiers will continue to expand into flexible office spaces.