Office portfolio expansion on cards as 63% of businesses back to the office on a hybrid basis

Hybrid working continues to be the most preferred workspace strategy, with 63% of the firms currently embracing the same, as per a survey of large, mid-sized and small firms conducted by Colliers.

Three days a week in the office is the most popular hybrid working style for India Inc, with 26% of the firms preferring the same. The survey indicated that this hybrid pattern allows businesses to pursue business goals without hindrances while offering better work-life balance to employees.

The report mentioned firms from the Consulting, BFSI, and engineering sectors are at the forefront of adopting hybrid working.

About 38% of the organizations indicated that they are planning portfolio expansion in the next 6-18 months, by leasing traditional as well as flex spaces. A majority of the businesses implement hybrid working in varying degrees, 35% highlighted that they would like to retain their existing portfolios, while 13% look to consolidate their office spaces.

“Interestingly, about one-third of the occupiers surveyed revealed that their productivity increased by 5-10% with hybrid working. Offices are now evolving into centres of collaboration and innovation, with the well-being of employees at the core. A hybrid work style needs to be supported by apt technological intervention to ensure seamless collaboration and communication”, said Ramesh Nair, CEO, Colliers (India).

The tier II markets are also back with large firms, especially, leading this trend as almost 70% of the large enterprises are open to exploring flex in non-metro cities, while only 27% of the smaller firms are considering the same. “About half of the firms who are planning office expansion in the next 6-18 months are from the Technology sector, followed by BFSI. This is led by the massive growth these two sectors are seeing over the last two years,” he said.

Employee convenience and higher occupancy costs in metro cities are prompting occupiers to consider non-metro cities. Since last year, flex spaces have been seeing a surge in enquiries from firms for office space in non-metro cities.

“Consulting, BFSI and Technology companies are keen on setting up offices in non-metro cities. Overall, the interest levels towards building offices in non-metro cities will help reduce the infrastructure load on metro cities, and at the same time help build a cohesive business ecosystem in the smaller cities, leading to more equitable growth,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.