Kuala Lumpur: The Instant Group, a global workspace innovation firm and the largest global marketplace for flexible workspace has crunched their numbers to assess the state of the flex market in Kuala Lumpur, Malaysia. Here’s what they found:
Demand for flex space in Kuala Lumpur was down by 30% in 2021 compared to both 2020 and 2019. However, demand is showing signs of recovery – between Q4 2021 and Q1 2022, demand increased by 20%.
|Average desk rates per month||Average desk rate 2019 per month||Average desk rate 2020 per month||Average desk rate 2021 per month||% change 2021 vs
|% change 2021 vs
|Kuala Lumpur||191 USD||189 USD||151 USD||-20%||-21%|
The supply of flex space in Kuala Lumpur increased by only 1% in 2021 compared to 2020, and by 2% compared to pre-pandemic levels (2021 vs 2019).
“Desk rates in Kuala Lumpur were down in 2021 compared to 2020 and 2019, with a flex desk costing 151 USD per month. This is typically a sign of a slower market which we can see is reflected in demand also being down year on year. The good news is that we saw an uptick in inquiries for flex space at the beginning of the year, increasing by 20% in Q1 2022 compared to Q4 2021. The post-pandemic return to the office, in combination with GDP growing by 5% year on year in Q1 2022 could be the driving force behind the demand for flex space increasing,” says Paul Marshall, Regional Director at The Instant Group.
“This is a trend that has continued in 2022 and we suspect desk rates to also rise in response. For entrepreneurs and businesses who are thinking of taking up flex space as the return to office movement continues, 2022 is a great year to do so for a great price” added Marshall.