·      New seats to come up at prime locations in Sarjapur Road, Hebbal, Koramangala, and HSR Layout

·      Urban Vault plans to enter markets in Delhi, Hyderabad, and Pune in the coming year

Urban Vault, one of the leading managed office space providers in India, on Monday announced the addition of 10,000 desks across major micro-markets of Bengaluru as part of the company’s strategy to expand its portfolio to meet rising demand for flexible workspace.

Founded in 2018, Urban Vault currently has 15,000 desks across 40 centres in Bengaluru. The total area under its portfolio is 10 lakh square feet. With this latest addition, Urban Vault’s total inventory of managed co-working seats in Bengaluru will surge to an impressive 25,000.

“There is a huge demand for managed flex spaces from corporates of all sizes. We are expanding our portfolio in a big way. We are adding 10,000 seats across prime locations in Bengaluru,” Urban Vault Co-founder and CEO Amal Mishra said.

The company will add around 3,000 seats in Sarjapur Road, 3,000 seats in Hebbal, 2,000 seats in Koramangala, and 1,000 seats in HSR Layout.

The average rental cost per seat is Rs 10,000.

With addition of 10,000 desks, Urban Vault’s total portfolio will reach 25,000 desks in Bengaluru. The number of centres will increase to 45 and the total area under the portfolio will reach 15 lakh square feet.

“Flexible workspace has become a preferred option for corporates looking to expand their businesses. Even those companies which are accustomed to traditional office setups are opting not to renew their lease agreements, instead transitioning towards co-working spaces,” Mishra said while talking about the potential of the flex space market.

Mishra highlighted that managed office space offers flexibility and helps corporates save on capital expenditure. “Corporates do not have to worry about managing physical infrastructure and housekeeping of their offices,” Mishra said.

Urban Vault’s innovative solutions and customer-centric approach have been instrumental in its success. From private offices to virtual spaces, the company delivers tailor-made, high-quality solutions. This allows businesses to redirect their focus towards their core activities, while Urban Vault takes care of their workspace requirements.

Leading enterprises such as BluSmart, and Gensol Group have already recognized the value of Urban Vault’s flexible workspaces. These spaces foster agility and innovation, making them a magnet for high-calibre professionals.

Looking ahead, Urban Vault is poised for extensive expansion, with plans to enter markets in Delhi, Hyderabad, and Pune in the coming year. This strategic move is driven by the company’s vision to offer its transformative workspace solutions to a wider audience.

Also Read: The future of Co working spaces: Innovative designs in technologies to boost productivity

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Finding a right workspace in Delhi that suits your business needs as well as fits in your budget can be a daunting task, especially for a beginner. We have prepared a detailed beginner’s guide to choosing a coworking space in Delhi that you should follow.  With the right guidance and in-depth knowledge of commercial real estate, you will be able to find your perfect office space at the best location in Delhi. Now, the question arises which workspace option is better for your startup company – conventional office setup or coworking space. Well, given the current scenario in the corporate world, more and more companies and young startup owners are giving preference to coworking spaces due to their flexible terms and affordable rates.

Everyone knows that there is no dearth of coworking spaces in Delhi NCR but still you can’t just take a lucky dip to select where you’re going to work from. Here are some of the important things to keep in mind while finalizing any workspace: 

1. Check Your Financial Affordability

Financial planning is one of the most important factors of establishing a new business venture. Hence, it should be done properly, especially at the start-up stage of your company. It doesn’t matter whether you are a self-funded company or receiving investment from another entity, you must make the best use of your resources. So investing large sums of money in office space makes no sense. If you want to work from a coworking space in Delhi, do your homework before deciding on one. Coworking space amenities vary depending on price and location. So, stay within your budget and avoid overspending on shared workspace.

2. Location of the Workspace

Location of the coworking space is another crucial factor that you should keep in mind before committing to any terms and conditions. You should avoid having your workplace at an inconvenient location. Facilities like easy access to transportation such as buses and metros, places to eat and parking space are essential elements that you should always consider when choosing a coworking space in Delhi. You don’t want to get stuck in traffic and waste your time and energy each day.

3. Evaluate Amenities

There are multiple coworking spaces in Delhi that provide numerous amenities to their members. Some of the most common amenities offered by these shared office spaces are – high-speed internet, meeting rooms, conference rooms, pantry, printing and scanning facilities etc. Evaluate these amenities carefully and analyze what kinds of facilities you will be needing to run your business operations.

4. Check the Ambience of The Space

The ambience of an office space creates a huge impact on the productivity of employees. People who work in a bright and airy environment are more productive during the day while dingy workplaces make employees feel bored and unmotivated. Therefore, office ambience plays an important role in keeping employees’ spirits high. When you go for a site visit, notice the ambience of the coworking space properly and analyze whether you will be comfortable working from there every day.

5. Learning and Networking Opportunities

The concept of coworking spaces is very popular among young working professionals because of the networking opportunities they provide to their users. You will be surrounded by other go-getters like yourself, who would be willing to help you out to grow in your field. Such an environment is perfect for bouncing ideas off each other, sharing resources, and collaborating on projects that would otherwise be impossible without the support of others in the workspace. 

6. Ask About Security

Apart from the location and amenities, security is also a major aspect to consider before booking a coworking space in Delhi. Please look into the security protocols of the coworking space carefully. Do they keep an entry log? Are there CCTV cameras on the floor? Is the neighbourhood well-lit at night? This is not directly related to profits, but providing employees with a safe environment to work in will reduce distractions and make them happy about working for you.

7. Read Reviews

Before selecting a coworking space, read online reviews about it. This will give you an idea of other members’ experiences and allow you to make an informed decision

To sum up, choosing the right coworking space in Delhi could be a challenging task if you don’t have proper knowledge about commercial real estate. Therefore, it is advisable to take the advice from experts prior to signing any document. Check for all the essential factors such as location, prices, amenities, environment, security, and brand image, only then book your office space.  

Also Read: Shapoorji Pallonji Real Estate signs Shahid and Mira Kapoor to endorse its VANAHA project in Pune

The post Beginner’s Guide to Choosing a Coworking Space in Delhi for Start-ups appeared first on Square Feat India.

• 12% decline in regular office leasing in FY23 compared to peak year (FY20) when it stood at 43 mn sq. ft. across the top 7 cities
• Coworking share of office leasing activity shot up to 23% in FY22-23 – this 11% surge is the highest recorded growth across all office real estate sectors
• Pune tops out with coworking spaces occupying a transaction share of 40% in the current fiscal, followed by Bangalore with 30% and Kolkata with 21%
• Demand for flexi office spaces pegged to grow further by 15-20% over the next 2-3 years.

In FY2022- 2023, the Indian commercial real estate sector witnessed multiple highs and lows due to the global economic downturn. Although the early half of this period looked promising, it was followed by the tremors of a recession in key global economies. Consequently, companies stayed wary of leasing large corporate spaces, ultimately decelerating commercial office growth.

The Silver Lining – Flex Office Spaces

The contracting regular office real estate market found respite in the concurrent coworking sector’s expansion. While businesses around the world were looking for ways to cut costs, coworking did what it does best – provide flexible, expandable, and enterprise-level offerings to businesses that were seriously re-evaluating their options.

The Covid-19 pandemic had turned the tables on the regular office work model. Nevertheless, most people who had tasted the freedom of working from home soon grew tired of the lack of sociability and interaction. Simultaneously, many companies found that while WFH was too alien a concept for them to digest, there were definite advantages to not having to pay enormous permanent office rents.

The hybrid model of work took root as the perfect solution to everyone’s problem, and flexible office spaces provided the perfect recipe for an occupier comeback.

ANAROCK Research data shows that there has been a rather significant 12% decline in regular office leasing activity in the current fiscal year (FY23) compared to the peak year (FY20) when leasing stood at 43 mn sq. ft. across the top 7 cities. In FY23, leasing across the top cities stood at approx. 36.11 mnsq. ft. 

Amid this decline in regular commercial office traction, coworking has performed remarkably well. Flexi office spaces’ share of office activity shot up to 23% in FY22-23 – a 11% surge against the 12% share in FY20. This substantial increase of 11% is the highest recorded growth across all office sectors.

Which cities contributed the most to this trend?

Pune tops out with coworking spaces occupying a transaction share of 40% in the current fiscal.

Bangalore comes next with the net absorption of coworking office spaces increasing to 30%. Interestingly, Bangalore’s coworking spaces and the IT/ITeS industry emerged as overall market leaders, owning 33% and 29% of the city’s commercial space demand respectively. 

The trend is not limited to Bangalore. As more businesses seek flexible alternatives to fixed office expenditures, flex office spaces in Kolkata also account for sizeable transaction shares. 

Dominating the office leasing scene in FY23, IT/ITeSoccupiers took the lead in Kolkata office market, capturing a significant 36% transaction share. Following closely behind, coworking spaces secured a 21% share of the city’s office leasing activity, highlighting their growing popularity and demand in the City of Joy.

What the future holds

The coworking sector will have an even bigger impact in the future, since the very DNA of work has undergone a fundamental change that will not reverse in the future. The changes in the way India Inc perceives office work post the pandemic are here to stay.

Many companies that insisted on their employees returning to office have learned to regret this decision, which itself was born out of an inability to move with the times. In the IT/ITeSspace, massive layoffs have been matched by equally weighty attrition levels. In most respects, trying to go back to go back to the accustomed ‘old normal’ has had disastrous consequences.

As India maintains and amplifies its current edge as the bright spot among the world’s economies, coworking will play a central role. The future demand for flexi office spaces in the country is pegged to grow further by 15-20% over the next 2-3 years. However, the actual demand may well exceed this prediction.

Also Read: Honer Prime Housing signs Development Agreement Cum GPA worth ₹1071 Cr with Squarespace Infra

The post Coworking Drives Commercial RE Through Turbulent Times  appeared first on Square Feat India.

• With ~839,250 seats, operational flex stock reaches 53 mn sq ft across the top 7 cities
• Bengaluru leads with a ~39% share of overall flex stock, followed by Delhi NCR (~17%)
• Space taken up by enterprises (converted to per seat basis) in flex has risen by 3.2X during FY21 to FY23, to a record-high number; Bengaluru, Pune, and Delhi NCR are the biggest markets
• Pune witnesses maximum flex stock CAGR of 49% since 2018, followed by Hyderabad, Chennai, and Delhi NCR
• 10X growth in flex seats leased by startups between FY 21 – 23

Ascertaining the close integration of India’s flex sector into the commercial real estate sector, India’s Flex Space Market – The brightest star in the CRE galaxy, a JLL – Smartworks joint report predicts that India’s operational flex stock will reach 106 mn sq ft, doubling again over the next five years. The country’s operational flex stock has risen to 53 mn sq ft across the top seven cities, occupying around ~839,250 seats. This equates to an overall office stock penetration level of around 4.7%, making it among the fastest-growing flex markets globally.

Enterprises cutting across origin, scale, and industry segments are looking to integrate flex in their portfolios, from housing their flagship offices to high-end R&D teams and business functions. Notably, the space taken up by enterprises (converted to per seat basis) in flex has risen by 3.2X from FY21 to FY 23, to a record-high number. Further, the enterprise seat take-up recorded in FY 2023 is higher compared to the combined FY 2021 & FY 2022 numbers. Bengaluru, Pune, and Delhi NCR have been the three biggest markets during the past three financial years, combining for a ~ 60% share of all enterprise seats taken up during that period.

Pure-play managed space providers have been the drivers of the flex resurgence post-COVID, seeing their share grow by 3.4X over the same period. The managed space operators have seen their operational footprint grow by 10X to ~15 mn sq ft till March 2023 compared to 2018. However, hybrid players still hold the largest share, accounting for a substantial 44.2% of the operational flex stock.

Bengaluru leads the overall operational flex stock, accounting for a ~39% share on average since 2018, followed by Delhi NCR with an average share of ~17%. Over the same period, Hyderabad and Pune have displaced Mumbai in terms of the next highest flex stock across the top 7 cities. Pune has witnessed the maximum CAGR growth of 49% since 2018 followed by Hyderabad (40%), Chennai, and Delhi NCR. (30%)

Enterprise deal sizes getting bigger

Bengaluru, Pune, Delhi NCR and Mumbai lead large deal sizes > 500 seats with a combined 75-80% share from FY 21- 23. Enterprise deals with > 500 seats has the highest share amongst all deal size segments, pointing towards demand for bigger, managed solutions from large enterprises. While Delhi NCR and Chennai dominate the small deal size of < 100 seats with a combined share of 55-60% from FY 21-23.

Agile start-ups make a beeline for flex

Indian start-ups have leased more flex seats over FY 21 – FY 23 compared to any other sector except technology. Their share has risen to a high of 31% in FY 2023, the second highest for the last two financial years. The Indian start-up ecosystem is embracing flex as it offers them just the right amount of cost, location, and tenure flexibility while creating flagship, modern workplaces for their employees. Start-ups across diverse categories including manufacturing / industrial, BFSI, and consulting are now adopting flexible office formats to a greater extent.

What do flex space users think about flex: A JLL Smartworks Occupier survey

The survey reveals that an overwhelming 90% of respondents prefer Flex in some form or the other.A sizeable 63% of all respondents want flex as an adjunct to their overall portfolio – keeping conventional spaces but adding more flexibility to their portfolio. The survey found that 1/4^th of all large enterprises do not mind moving to a fully flex portfolio, thus indicating how demand is evolving with a service-oriented space solution being highly preferred, Small enterprises, on the other hand, prefer moving to a fully flex portfolio given the need for agility and cost optimization.

“Office First” meets flexibility

Respondents who have an ‘office first approach’ indicate a willingness to have up to 25% of their existing portfolio in flex spaces. 27% of respondents who currently advocate a work-from-office-only approach, still want to work from conventional offices only, but 1/3rd of them are willing to move up to 25% of their portfolio into flex.  Among those following a hybrid approach, around 39% are willing to move up to a quarter of their portfolio in flex spaces and they also show a higher degree of willingness to look at moving 100% of their portfolio into flex.

Note: ‘Office first’ is defined as the respondent set that follows a ‘hybrid’ or ‘work from office’  workplace strategy

Flex story in tier 2 cities

The JLL-Smartworks report finds that the flex story in tier 2 cities is gaining definite momentum. Business continuity has emerged as the biggest driver for respondents looking at tier 2 cities as part of their growth and geographic diversification plans. Lower operational costs, workforce mobility, and talent retention are top parameters to explore opportunities for flex spaces in tier 2 cities

It further highlights that sustainability has become a key criterion when choosing workspaces, particularly among the larger occupier segments. As sustainability becomes imperative for space selection, occupiers want to imbibe green building certifications as a part of their ESG goals. The share of space leased in green-certified buildings by flex operators rose to 51% in the 2021-Q1 2023 period compared to just 28% in the preceding period of 2019-2020.

The report suggests that flex operators can help support building investors and landlords in layering services that deliver a personal and memorable experience which aids in tenant management, better revenues and higher occupancy, and in turn better valuation.

Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, said, “As employees demand more from their workplaces and occupiers look to revitalize their offices while adding a greater degree of dynamic space planning to their overall portfolio strategy, the flex sector has emerged as a strong partner. From an operational footprint of under 20 mn sq ft, the flex segment is 3X in size across the top seven cities, driven by rising demand for managed space solutions from enterprises cutting across geographies and industries. We expect the sector to continue its growth journey and is poised to double its footprint over the next five years, crossing the 100 mn sq ft mark across the top seven cities. Additionally, organizations are looking to tap into the opportunities offered by the tier 2 and tier 3 markets in terms of talent accessibility and mobility of their workforce. This does not mean that the demand for conventional office has been cannibalized.”

Neetish Sarda, Founder, Smartworks said, “The flex sector has been at the forefront of changing the dynamics of the CRE market. Flex has truly gone big as employee experience and technology intersect to create modern workspaces. It is no longer an afterthought or a short-term tactical decision. The continued rise of managed spaces, even post-COVID, has been truly remarkable, significantly propelling the overall growth of the flex segment. From FY21 to FY23, the extraordinary three-fold increase in the adoption of enterprise seats closely aligns with the widespread acceptance and adoption of the managed spaces and the overall flex model.”

Also Read: Tech companies occupy 50% of total flex space in India

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The latest Colliers’ report ‘Global Occupier Outlook 2023’, highlights key takeaways and insights on the evolving global workplace. The report reveals that APAC occupiers are grappling with the complexities of the hybrid work model, which remains inconsistent across markets and industries. The lack of clarity and macroeconomic uncertainty are posing challenges for businesses in projecting their space requirements. According to Colliers’ experts, companies are facing the dilemma of striking a balance between providing employees with desired flexibility and realigning their portfolios for the next evolution of the workplace. Consequently, many businesses are deferring decisions on office take up and investment.

Despite these challenges across the globe, occupiers in India have been quick to adopt flex spaces, attracted by the flexibility, agility, and cost-effectiveness. Flex spaces are becoming an integral part of occupiers’ portfolio, with its share in occupiers’ total portfolio rising to an estimated 10-12% in 2023, from 5-8% before the pandemic in 2019, as per interactions with industry experts.

Colliers’ leadership Sam Harvey-Jones, Chief Operating Officer, Asia Pacific and Mike Davis, Managing Director, Occupier Services, Asia Pacific in their recent visit to India note the positive market sentiments echoed by the Indian occupiers, particularly within the technology sector to adapt to the changing landscape with a focus on increasing flex space, using data to help in informed decision making and focus on the employee experience. 

Harvey-Jones said, “The APAC region is undergoing a significant transformation in the way workspaces are perceived and utilized. While challenges persist, this period of change presents unprecedented opportunities to reimagine the role of space and explore new approaches that cater to evolving employee needs. The research finds APAC occupiers are shifting from an ‘inward’ business view of what’s important in an office or location, to an ‘external’ view of what locations gives their employees access to in terms of culture, lifestyle and wellness.”

Davis added, “Adopting technology solutions such as digital tools and dashboards is critical for addressing the challenges posed by the hybrid workforce. These tools enable occupiers to optimize space utilization, implement safety measures, and make data-driven decisions.”

Colliers has developed tools that integrate various data sources to provide a comprehensive view and facilitate informed decision-making.

Key trends witnessed by Occupiers across the Globe

The report features insights and resilient strategies being adopted by real estate decision-makers to prepare for an uncertain future, adapt to emerging market trends and overcome unprecedented challenges. Focusing on three key aspects, Engage, Evolve and Accelerate, the findings uncover efforts being made by some of the leading global companies to strengthen processes, build resilience, and meet complex needs, with the aim to enrich the workplace experience.

Shining a spotlight on the ESG framework and the adoption of pioneering technology, the importance of a sustainable workplace is highlighted. Since over 65% of workers are seeking more in-person time with their teams, companies across the globe are investing in green design, tech-enabled features that promote higher health & safety, and wellbeing amenities, among others. Readers can also learn of other crucial factors occupiers are focused on including the right location, DEI initiatives, digital tools, and the precise portfolio mix. Further, as remote work gained momentum and proved to be effective, the big question of which work model augments productivity and business growth is addressed.

Across the APAC region, occupiers are keen on realigning their office portfolios to meet business needs while providing the flexibility employees’ desire. The right portfolio is key to keeping culture intact, attracting and retaining best talent, and controlling operational costs. India has always been a large and growing market when it comes to commercial real estate. Despite the lingering threat of the pandemic, the scare of a recession and geopolitical tensions, the investor sentiment both global and domestic, remains strong. A number of industries including tech, ecommerce, 3PL, consulting and manufacturing have witnessed rapid growth over the past few quarters and are the demand drivers for office assets across the country.

India occupiers quick to adopt flex space

Occupiers in India have been quick to adopt flex spaces, attracted by the flexibility, agility, and cost-effectiveness they offer. Flex spaces are becoming an integral part of occupiers’ portfolio, with its share in occupiers’ total portfolio rising to 10-12% in 2023, from 5-8% before the pandemic in 2019, as per interactions with industry experts.  Going forward, flex spaces will continue to see strong growth, as they continue to support occupiers in realigning their portfolios and space considerations to suit a hybrid working style while leveraging technology & sustainability to improve efficiency and employee experience.

Peush Jain, Managing Director, Office Services, India, said, “Flex spaces have emerged as a core strategy for occupiers to adopt a decentralized workspace model, serving as a promising alternative to the traditional paradigm. As compared to shorter lease tenures of 1-2 years pre-pandemic, occupiers are now going for longer commitments of 3-5 years with flex space operators as they look to integrate flex space as a long-term solution. During 2022, leasing by flex space operators touched 7 mn sq ft across top 6 cities, highest in any year. This was a 46% YoY increase led by prominent IT hubs such as Bengaluru and Pune.”

As of Q1 2023, India’s flex space penetration stands at 6.5% and continues to expand, led by occupiers’ rapid adoption of hybrid & de-centralised work strategy in a bid to build new age workspaces at an optimal cost. Other markets in the APAC region have seen relatively slower growth in flex space, with flex space penetration hovering around 2-4%.

Flex spaces have also provided companies the agility required to scale operations up or down quickly, allowing businesses to respond effectively to evolving circumstances.

Trends in flex space leasing (Mn sq ft)

Source: Colliers

Notes:

Data pertains to Grade A buildings

Data pertains to top 6 cities- Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune

Gross absorption does not include pre-commitments and lease renewals

City-wise flex space leasing Q1 2023 (mn sq ft)

Note: Data pertains to Grade A buildings

Share of flex space in total leasing Pan India (Grade A) – 20%

Tech in Flex

We are seeing in India that technology occupiers have been one of the driving forces of rising flex space demand across the top cities. They currently occupy over 50% of the total flex space across Chennai, Delhi-NCR, Pune and Hyderabad as per industry experts. Other major sectors that are actively embracing hybrid working through flex include Engineering & Manufacturing and BFSI. In larger markets such as Mumbai and Bengaluru, demand by BFSI & Engineering occupiers for flex space is almost at par with Technology occupiers. Demand from Technology occupiers will continue to remain strong in next two years led by a strong recovery and robust hiring plans as businesses continue to focus on rationalizing costs.

Hybrid in Office

Across industries, occupiers are in the process of reassessing their current office footprint to assess, review & determine the most optimal mix for their employees. Several organizations are looking forward to pivoting to some form of a hybrid model for the foreseeable future – blending remote work and physical presence in offices. Despite the experience of working from home for more than two years, major occupiers believe that the physical presence of workers is critical at some regular interval. Hybrid working model has brought flex spaces to the centre stage and has helped occupiers in optimizing costs and ensuring employee flexibility. 

The hybrid working pattern has reset expectations of the future workplace and has opened new possibilities for how much flexibility employees can have in choosing, ‘where to work.’ Companies are now opting distributed workspace strategy to ensure easy commute for their employees, over having one large central headquarter. This has spurred demand for flex spaces across peripheral locations and non-metro cities. Non metro cities such as Ahmedabad, Coimbatore, Indore, Jaipur, Kochi and Lucknow are witnessing heightened activity in flex spaces. This trend is prominent amongst Technology, Consulting and E-commerce companies who are establishing multiple satellite offices in these locations.

Technology and Sustainability to drive future workplaces

Developers are increasingly taking cognizance of the evolving needs of occupiers and the need to integrate smart technology to attract tenants. Inclusion of digital infrastructure and smart facilities shall also contribute to achieving greater operational efficiency, reduce energy consumption and higher customer retention. Offices will continue to evolve as firms seek to re-invent their workspaces and incorporate touchless technology and next generation collaboration tools.  We expect firms to integrate smart technologies such as Internet of Things (IoT) and predictive analytics for cost optimization and better space utilization.

While green buildings are not a new trend, they are garnering significant interest from occupiers as optimal energy usage and automated services remain key focus areas. During 2022, about 81% of the new office supply across top 6 cities was green certified. Going forward, demand for green certified buildings will continue to rise as occupiers continue to chase green certified buildings to ensure that the workplace meets environmental, energy, and health standards in its design, construction, and performance.

Also Read: Realtors discuss importance of delivering dreams with new technologies

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·       Flex space leasing to cross 7 mn sq ft, touch a new high

·       Bengaluru to be the market leader, likely to account for 33% of leasing in 2022

·       New supply expected to increase by about 25%-30% YoY in 2022

·       Demand is likely to see some moderation in 2023 with gross absorption anticipated to close at 35 – 38 mn sq ft

After 2 years of slow demand for commercial offices, the year 2022 is likely to close on a new historical high, with gross absorption likely to touch 50 mn sq feet. This is likely to represent a 52% rise in total leasing from last year. Occupiers have been optimistic about their future workplace needs, after a gap of two years, and were snapping up office space across the top Indian cities. Bengaluru is likely to account for about 33% of the gross absorption, followed by Delhi-NCR and Hyderabad.

Grade A gross absorption (msf)

“The year 2022 is likely to be a landmark year in commercial office real estate. Collaborating, brainstorming and creating a dynamic culture are the three pillars of any workplace post-pandemic. During 2023, slow decision-making could result in leasing activity of about 35-38 mn sq feet. In 2023, Bengaluru followed by Hyderabad expected to see most of the new supply across the top six cities, says, Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers.

“Market fundamentals continue to remain strong and demand holding through 2022. At this time, real estate players should prioritize long-term stability and creating stronger portfolios, focusing on aspects such as ESG and zero-carbon strategy. The future of real estate will require some recalibration from traditional practices to sustain and grow in this constantly evolving market”, added Peush Jain, Managing Director, Office Services, Colliers India.

Upgradation of offices will be at the forefront and a recurring theme. Landlords and occupiers are looking to upgrade offices to modernize them and make offices more sustainable. Across the top six cities, office stock of about 118 million sq feet holds potential for upgradation, accounting for 19% of the total office stock.

While demand in Bengaluru, Delhi-NCR and Chennai has already surpassed the earlier high seen in 2019, Mumbai, Hyderabad, and Pune are also inching towards reaching historical levels by the end of the year. However, we see a slight dent in enquiries and demand in the near term amidst global economic headwinds. Provided the demand remains stable and consistent in the first half of 2023, rentals are likely to pick up from the second half of the year.

Flex operators are likely to lease 7 mn sq feet by the end of 2022, touching the highest ever in the country, after 2019. This represents a 2-fold increase from 2021 as flex space has seen immense demand from medium and large enterprises this year. Occupiers approaching their lease expiry are exploring flex spaces as their relocation option for the flexibility it offers them. As per a C-Suite Survey conducted by Colliers and Awfis, about 77% of the occupiers are planning to incorporate flexible workspaces in their portfolio.

“New supply is expected to increase by about 25%-30% on a YoY basis during 2022, at about 44 mn sq ft. However, in 2023, developers are likely to step ahead with caution led. Developers are likely to align new supply with the demand momentum. This will ensure the market equilibrium is not disturbed and vacancy levels remain rangebound.” says Vimal Nadar, Senior Director and Head of Research, Colliers India.

While the impact of global economic disruptions, rising commodity prices and recessionary concerns may slightly outweigh India’s growth prospects in a short term, India’s economy is well placed.  The real estate sector might see some opportunities led by the technology sector, as India will become the preferred destination for outsourcing. IT and Tech-enabled companies in India are experiencing a rise in outsourcing as global companies in the US continue to find cost-cutting solutions. However, the real estate sector is likely to resort to a wait-and-watch approach for the next few quarters.

Also Read: CDSL buys 2 Offices in Lower Parel for Rs 163.17 Cr

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In line with this partnership, Grant Thornton has taken customised set up in Awfis’ Eco Centre (Awfis Gold centre) at Acropolis Mall in Kolkata. Along with Grant Thornton, Awfis has also partnered with Teleperformance, a global digital integrated business service provider, and Conneqt, a leading digital IT and BPM services provider for over 1000+ seats at Godrej Waterside and Technopolis centres respectively. In the past, Awfis has also partnered with electronics giant Samsung for over 500+ seats in Kolkata. 

Flex players are now taking up spaces in malls and hotels to expand their presence as startups, SMEs and enterprises warm up to the idea of shared facilities over owned premises. Given the above, Awfis is taking the collaborative workspace model to newer spaces like hotels and malls to meet the hybrid workspace demand, which has skyrocketed post-pandemic.

The Awfis environment provides a unique amalgamation of different workstyles while providing the company’s employees with amenities and benefits such as meeting rooms, a well-designed collaboration area, a multi-cuisine restaurant, concierge service along with full hygiene and safety measures.

Commenting on this association, Amit Ramani, Founder & CEO, Awfis said, “We are delighted to have a leading establishment like Grant Thornton as a key client. This valuable partnership is a game-changer for the industry where large corporates have realised the benefits of flexible working and are increasingly shifting from a centralized conventional office to decentralized and distributed flex offices for their workforce.”

Sumit Lakhani, Deputy CEO, Awfisadded, “The trend of using flexible spaces in commercial real estate portfolios of large organisations is witnessing unprecedented growth and will become more prominent in the coming future. The flex space take up from large corporates in Kolkata is a clear reflection of the surge in demand that we are seeing pan India across all metros and tier 2 markets as well. Flex players are now being seen as valuable partners in setting up highly customized, efficient and agile workspaces by companies of all sizes.” he added.

Sanjay Mehta, Executive Director – Workplace Enablement, Grant Thornton Bharat said “We are delighted to partner with the leading flex space provider, Awfis, for our hybrid workspace needs. The vibrant tech-enabled environment, provides the right mix of a corporate office ambience combined with new-age elements for collaborative engagements and enhanced innovation. This will help improve our people and client experience.”

Currently, Awfis has 9 centres in Kolkata spread across premier and sought-after locations that include Acropolis Mall, Chowringee road, Salt Lake, IT Hub in Salt Lake Sector V, etc., and plans to add 2 new centres in the next 3 months.

Also Read: Awfis partners with Nucleus Office Parks to launches Awfis Gold Centre in Mumbai

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