Flex spaces and sustainability are amongst the key value creation opportunities in APAC and India. India’s flex space stock has doubled since 2019, crossing 50msf in Q2 2024, while India’s green certified stock surged 68% since 2019, and is currently at ~ 490 msf.

According to Colliers‘ Expert Insights | Asia Pacific Office Markets July 2024 report, there are 5 key value creation opportunities which are set to gain further prominence; these are innovation, sustainability, diversification, and strategic flexibility:

Enhanced enterprise resilience: Organizations are prioritizing flexibility in their real estate portfolios and designing workplace strategies accordingly to bolster resilience against market fluctuations and adapt to evolving organizational needs.

Colliers Managing Director of Occupier Services, Asia Pacific
“There is a growing emphasis on flexible, high-quality workspaces that cater to evolving corporate needs. Organizations prioritizing flexibility, innovation, diversification and sustainability in their real estate portfolios and workplace strategies will be a step ahead moving into 2025.”

Mike Davis - Colliers Managing Director of Occupier Services, Asia Pacific.

Workplace transformation for talent management: The uptake in hybrid working models reflects shifts in organizational and societal norms towards flexible work arrangements.

Artificial intelligence and data integration: The integration of data analytics and artificial intelligence (AI) is revolutionizing real estate strategies, driving efficiency across the built environment, as well as optimizing resource allocation and operational performance.

Managing Director, Office Services,  Colliers India
“India features prominently in the flex market of APAC region and has a flex penetration rate of 7% compared to a penetration rate of 3-4% in other regional markets. The flex market growth is reiterated by the expansionary plans of leading flex operators across major cities of the country. The first half of 2024 has witnessed 4.4 million sq ft of flex leasing; flex demand in the six major cities of the country can potentially cross the 2023 high of 8.7 million sq ft by the end of the year. Overall, the demand for flexible workspaces continue to rise, fueled by domestic and global enterprise space uptake across various segments and reflects a broader shift towards adaptable workspaces.”

Arpit Mehrotra - Managing Director, Office Services, Colliers India.

Diversification in CRE partnerships: Companies are increasingly adopting multiple CRE partner models for real estate and facilities management to enhance service delivery and operational flexibility

Senior Director & Head of Research, Colliers India
“In India, over the past few years, high-performing green assets have gained significant prominence amongst real estate stakeholders. As of Q2 2024, green-certified office stock is ~ 490 million sq ft, about 67% of India’s overall Grade A office stock. Notably, the green-certified stock has surged 68% compared to 2019 levels. As the demand for sustainable workspaces continue to increase, sustainable practices such as securing green building certifications, conducting environmental assessments, and adopting innovative technologies and materials are likely to remain crucial for developers and investors.”

Vimal Nadar - Senior Director & Head of Research, Colliers India.

Sustainability-focused real estate upgrades: There is growing momentum to upgrade legacy real estate assets and align with sustainability commitments to mitigate carbon emissions and prevent assets from becoming redundant due to regulatory changes.