Demand for flexible workspaces in the EMEA region has surged by 35% in the past five years, according to Instant Group's Q1 2024 EMEA Flexible Offices report.
This growth, spurred by a shift away from traditional office setups, has outpaced supply, but both operators and landlords are optimistic about significant future expansion.
Despite fluctuations in some cities, premium flexible workspaces remain highly sought-after due to limited supply and modern amenities.
Instant's research revealed that 46% of landlords plan to develop flexible spaces, while 64% of operators plan expansions.
Meeting rooms are the most desired amenity, followed by furnished spaces, which are now considered a baseline expectation.
By 2030, 66% of landlords expect 25% of their portfolios to be flexible, while 83% report increased demand for flexible space compared to traditional leases.
Operators are also seeking further growth, with 63% planning to expand their footprint in the next two years.
Established cities like Barcelona (+9% growth since 2019) and Paris (+6%) are attracting the most investment while faster-growing emerging markets are being overlooked, according to Instant. This presents a potential blind spot for the industry.
France is seeing a rise in the 'hub-and-spoke' office model, with central Paris capturing 84% of demand (up from 75% in 2019).
Hamburg's 28% growth in demand threatens Berlin's dominance (-8%) in Germany, while Valencia (+22%) and Marbella experience unprecedented interest in Spain where demand is still recovering in Barcelona and Madrid.
Sean Lynch, CCO, Asia Pacific & EMEA The Instant Group, commented: ‘There is massive opportunity on the horizon for the flexible workspace sector in EMEA. With increasing demand consistent over recent years, operators and landlords are well positioned to open new flex space locations thus increasing supply. Data-led investments into markets and assets primed for flex will be critical to their success, as well as focusing on revenue and margin growth by way of offering a wider range of flex products to the market.’
