What Were the "Hottest" Markets for Flex in 2024?

The flexible office market in 2024 is a vivid snapshot of how the world of work is shifting. Across the globe, cities are experiencing varying growth rates, as measured by their 3-year CAGR (compound annual growth rate), which highlights longer-term trends beyond year-to-year fluctuations. 

As businesses adjust to the realities of hybrid work, economic unpredictability, and changing local conditions, these cities are at the forefront of meeting the rising demand for adaptable spaces. Whether driven by the surge of tech startups or a move toward more affordable solutions, 2024 has proven that flexible workspaces are no longer just a trend—they’re the heartbeat of how we work today. 

Here’s an analysis of the top 10 “hottest” markets for flexible office space based on the cities with the highest volume of desk enquiries in 2024.  

TOP 10 MARKETS FOR FLEXIBLE WORKSPACES IN 2024

1. LONDON, ENGLAND

London recorded a -11% CAGR, reflecting challenges in its flexible office market over the past three years. Despite this contraction, the city remains a cornerstone of global business, with demand mainly driven by a rise in managed offerings as clients transition from shared spaces to more tailored solutions. While the West End remains a stronghold for demand, post-COVID trends show increasing interest in outer London and Zone 2 areas as businesses seek flexible, high-quality options. 

2. DUBAI, UNITED ARAB EMIRATES

With a 13% CAGR, Dubai continues to solidify its role as a global business hub. The city’s strategic location, cutting-edge infrastructure, and supportive government initiatives—such as free zones and visa reforms—make it a prime destination for flexible workspaces. With a diverse economy and a growing influx of remote workers, demand continues to rise for coworking spaces that combine cost-effective solutions with opportunities for networking and collaboration. 

3. RIYADH, SAUDI ARABIA

Riyadh leads the pack with a remarkable 58% CAGR, driven by the country’s Vision 2030 initiative, which fosters entrepreneurship, foreign investment, and innovation hubs. However, limited provider presence leaves significant room to meet this rising demand and support Riyadh’s collaborative and entrepreneurial growth. 

4. SYDNEY, AUSTRALIA

Sydney remains the leader in total demand for flexible office spaces in APAC, with more requests for flex desks than any other APAC city. However, Sydney recorded a -5% CAGR, signalling a slight decline in its flexible office market. While Sydney continues to attract businesses with its high-quality, adaptable workspaces, this shift highlights the evolving dynamics of the APAC region, where other cities may begin to challenge its dominance in the flexible office market. 

5. BANGALORE, INDIA

With a 3-year CAGR of 8%, Bangalore stands out as a steady performer. Known as India’s Silicon Valley, the city’s thriving tech ecosystem has driven a surge in larger workspace requirements, with demand for 20+ desks rising by 20% over the past year. This growth underscores Bangalore’s position as a dynamic hub for innovation and a top destination for businesses seeking flexible, scalable solutions. 

6. MAKATI, PHILIPPINES

With a 6% CAGR, Makati retains its reputation as the financial heart of the Philippines. Its prime location and top-tier office offerings make it a magnet for businesses aiming to establish a presence in Southeast Asia, solidifying its reputation as a thriving hub for regional and international companies. 

7. MEXICO CITY, MEXICO

Mexico City’s -14% CAGR signals significant challenges over the past three years, likely influenced by uncertainty during an election year in Mexico and the USA. This caused many companies to delay decisions and maintain the status quo until the situation stabilised. After a strong 2023 that saw several large inquiries, the lack of similar demand in 2024 reflects the impact of this uncertainty, but the market’s potential remains strong and is likely to rebound as conditions improve. 

8. NEW YORK CITY, UNITED STATES

New York City experienced a -5% CAGR, reflecting slight declines in its flexible office market over the past three years, but it remains a cornerstone of the global market. The city's enduring appeal, driven by its status as a business and cultural hub, ensures its continued relevance despite minor fluctuations in demand. 

9. KUALA LUMPUR, MALAYSIA

Kuala Lumpur has shown steady growth in its flexible workspace market, with a 2% CAGR over the past three years. In 2024, the city experienced an impressive 78% year-over-year increase in demand—one of the fastest in the APAC region. This surge highlights Kuala Lumpur’s growing appeal as a cost-effective and dynamic business hub, with its strategic location near major Southeast Asian markets like Singapore and Indonesia, strong infrastructure, and skilled talent pool.

10. JOHANNESBURG, SOUTH AFRICA

Johannesburg's market for flexible workspaces has experienced a strong CAGR of 10% over the past three years, highlighting steady growth in this dynamic sector. South Africa, as a whole, remains one of the fastest-growing markets globally for flexible workspace solutions. These trends reflect Johannesburg's potential as a key player in the flexible office space market, signalling exciting opportunities for continued expansion. 

INSIGHTS FROM YEAR-OVER-YEAR TRENDS

This year’s data shows how the global flexible office market is maturing, with demand influenced by local factors such as economic conditions, infrastructure development, and the widespread shift towards hybrid work practices. 

• Steady Performers: Markets such as Bangalore, Dubai, and Makati exhibit consistent expansion, underscoring their resilience and adaptability to evolving workplace needs. 

• Challenges in Established Hubs: Cities like London, New York City, and Sydney face growth challenges, highlighting the need for innovation and adaptation in mature markets. 

THE FLEXIBLE OFFICE MARKET'S PATH FORWARD

The 3-year CAGR data demonstrates that the global flexible office market is maturing in diverse ways, influenced by local economic conditions, infrastructure development, and cultural shifts. By leveraging market insights and adapting to evolving demands, industry leaders can capitalise on growth opportunities and navigate challenges effectively.  

As we look toward 2025, it's clear that flexibility will continue to be key—both in terms of the spaces we work in and the ways businesses structure themselves. The next phase could see even more tailored solutions for specific industries or hybrid models that blend coworking, private offices, and remote capabilities in innovative ways.  

With more cities across emerging markets gaining traction, we’re likely to see a shift from traditional business hubs to regions that combine cost-effectiveness with access to global talent.