8 months ago
Listed Companies' Rent, Lease Expenses Decline Post-Pandemic
Since the pandemic, many companies in India have been spending less money on rent and leases compared to how much they make.
This trend is seen in different industries like manufacturing and services.
Experts think this might be because companies are selling more, and people are working more flexibly, sometimes from home or in shared offices.
Even though companies are using less office space, there is still demand for offices, especially from companies that do back-office work for foreign companies.
Some companies that offer flexible workspaces, like WeWork, are doing well and have even started selling shares on the stock market.
Rent and lease expenses for listed companies have decreased from 0.72% of sales in FY19 to 0.38% in FY25.
This decline is observed across key sectors, including manufacturing and non-financial services.
Sales for listed non-financial companies have grown over 60% during this period.
Flexible work arrangements and the rise of shared spaces may contribute to the decline in expenses.
Office space demand remains strong, with global capability centers and flexible office space operators driving transactions.
- Who
- Listed non-financial companies in India
- What
- Decline in rent and lease expenses relative to sales and change in stock
- Where
- India
- When
- From financial year 2018-19 to 2024-25
- Why
- Increased sales, flexible work arrangements, and the rise of shared spaces and hybrid work models
Key facts
- Rent and Lease Expenses (FY19)
- 0.72% of total value of goods produced
- Rent and Lease Expenses (FY25)
- 0.38% of total value of goods produced
- Manufacturing Sector (FY19)
- 33 basis points of sales and change in stock
- Manufacturing Sector (FY25)
- 20 basis points of sales and change in stock
- Non-Financial Services (FY19)
- 1.22% of sales and change in stock
- Non-Financial Services (FY25)
- 0.42% of sales and change in stock
- Sales Growth (FY19-FY25)
- Over 60%
- WeWork India Valuation
- Over ₹8,400 crore
- GCCs Office Transactions (Q3 2025)
- 32%
- Flexible Office Space Transactions (Q3 2025)
- 3.8 million square feet
Quotes
Ambareesh Baliga
Independent market expert
“A lot of people still work from home”
rediff.com
WeWork India Management
Flexible workspace provider
“In flexible workspace solutions the upfront capital required to build the facility is usually invested by the operator, which can support the end user in circumventing the need for upfront capital investment in their office fit outs. This may provide an option to end user organisations to allocate the same capital towards their core business”
rediff.com
Knight Frank
Property consultancy
“Flex spaces are now an established part of the growing Indian office market, consistently accounting for over 20 per cent of the market over the past four quarters”
rediff.com
