The global economic crisis, influx of technology layoffs, and hybrid work culture have presented a challenge to the demand for office space in India. According to Colliers India, flex space occupiers leased 2.1 million square feet of space in the first quarter of 2023, making up 20 per cent of the total lease; just slightly lower than the technology sector, which accounted for 22 per cent. Together, the two industries accounted for nearly 42 per cent of the total leasing across the top six cities.
AI is a major contributor to the influx of job losses in the tech industry, with Zoho Boss Sridhar Vembu noting its serious threat to programming jobs. As tech companies strive to build operational efficiencies through hybrid models, the demand for traditional office spaces has decreased. However, flex spaces have come to the forefront due to their advantageous features, such as flexible lease terms, lower capex, modern workplace designs, and other benefits.
As evidenced by its 50% share of the flex leasing done in Q1 2023, Bengaluru was the most preferred market for flex spaces in India. Delhi-NCR followed closely behind at 30 per cent. The Indian economy is currently facing some turbulent times due to the downturn, but Colliers India is hopeful for a rebound in office leasing activity by the end of the year.
Zoho, a cloud-based software development company led by Sridhar Vembu, has been at the forefront of leveraging technology to bring innovation to Indian businesses.From the creation of data-driven software to aligning organizations with the hybrid work environment, Zoho has been promoting an affordable and efficient work-life balance. The company has promoted digitally-driven AI and machine learning technologies, making it an invaluable resource to tech companies as they navigate the tough economic climate.
