The report highlights India as the clear leader in the region, accounting for 68% of total office leasing activity across Asia Pacific during the year. Strong demand from occupiers, expansion of global capability centres (GCCs), and steady economic growth have positioned India as the dominant office market in the region.

India, China and Japan Drive APAC Office Demand

According to the Colliers Asia Pacific Office Market Insights – February 2026 report, the majority of office demand in the region came from India, Mainland China, and Japan, which together accounted for over 90% of total leasing activity in 2025.

While the largest economies dominated overall demand, several smaller markets also saw significant growth. Markets such as the Philippines, New Zealand, and Hong Kong recorded multi-fold increases in leasing activity, driven by improving business sentiment and renewed corporate expansion.

Office Supply Also Rises Across Key Markets

The report noted that new office supply across the top 11 Asia Pacific markets increased 19% year-on-year, reaching 9.6 million square metres (103.3 million sq ft) in 2025.

Most of the supply growth was concentrated in India, Mainland China, and Singapore, which together contributed 82% of the total new office completions during the year.

Overall, eight of the eleven major markets recorded an increase in new office supply, indicating strong developer confidence in the region’s commercial real estate sector.

India Accounts for 68% of Leasing and 55% of New Supply

India emerged as the largest driver of office market growth in Asia Pacific, accounting for:

• 68% of total leasing activity across the region
• 55% of the new office supply delivered in 2025

According to Vimal Nadar, National Director and Head of Research at Colliers India, the country’s strong fundamentals continue to attract both occupiers and investors.

“India continues to drive the APAC office market, firmly establishing itself as a dominant demand centre and key location for investments. Backed by steady economic growth, a strong occupier base and expanding GCCs, India’s office market is well positioned to sustain its growth momentum,” Nadar said.

Institutional Investments Surge 21% in 2025

Investor confidence in the office sector also strengthened significantly during the year.

Institutional investments in Asia Pacific’s office segment rose 21% year-on-year to USD 58.6 billion in 2025, reflecting growing interest from global capital in the region’s commercial real estate market.

India recorded one of the strongest increases in office investments, further reinforcing its position as a preferred destination for long-term institutional capital.

Vacancy Levels Expected to Tighten in 2026

Industry experts expect office demand and supply to remain robust in the first half of 2026, supported by continued corporate expansion and a growing preference for high-quality, future-ready office spaces.

According to Arpit Mehrotra, Managing Director – Office Services at Colliers India, the strong leasing momentum seen in the second half of 2025 is likely to continue.

“Office demand across key APAC markets continues to strengthen despite geopolitical frictions. Supported by domestic growth in major economies, controlled inflation and a more accommodative interest rate environment, the region’s fundamentals remain stronger than many global markets,” Mehrotra said.

He added that as vacancy levels decline in prime locations, rentals across key office markets—including India—are expected to move upward in the coming months.

Companies Becoming More Strategic About Office Space

The report also highlights a structural shift in corporate real estate strategies across Asia Pacific.

According to Mike Davis, Managing Director of Occupier Services for Asia Pacific at Colliers, companies are no longer simply expanding office footprints but are recalibrating their workplace strategies.

Instead of taking larger spaces, organisations are focusing on better-located, higher-quality office environments that support hybrid work models and employee experience.

“Businesses are not simply returning to the office; they are recalibrating their portfolios. We are seeing companies make fewer moves, but better ones,” Davis said.

Outlook: India to Remain APAC’s Office Powerhouse

With strong occupier demand, growing global capability centres, and rising institutional investments, India is expected to remain the dominant office market in Asia Pacific in the coming years.

The continued shift toward premium Grade-A office buildings, sustainable workplaces, and strategic corporate expansions is likely to support healthy leasing volumes and rental growth through 2026.

Also Read: India’s office sector can see leasing of 35-38 mn sq ft during 2023

The post India Dominates Asia Pacific Office Market as Regional Leasing Touches 105 Million sq ft in 2025 appeared first on Square Feat India.

The report highlights that multinational corporations—especially from the United States, Europe, and the United Kingdom—are increasingly using India not just as a cost-efficient outsourcing hub but as a strategic base for innovation, research, and advanced operations. This structural shift is expected to significantly boost leasing activity across India’s top seven office markets: Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, and Kolkata.

Strong Economic Tailwinds Supporting Growth

India’s macroeconomic outlook is reinforcing investor confidence. The International Monetary Fund recently revised the country’s 2026 GDP growth forecast upward from 6.1% to 6.3%, while projecting 6.5% growth for 2027. Analysts attribute this to robust domestic demand and progress on bilateral trade agreements with key economies such as the US, EU, UK, and France.

These agreements—covering tariff reductions, improved market access, and sector-specific policy easing—are expected to strengthen India’s export competitiveness and encourage foreign companies to scale up their operations locally. Sectors expected to benefit the most include:

• Technology & digital services
• Banking, Financial Services and Insurance (BFSI)
• Engineering & manufacturing
• Consulting and professional services

GCC Leasing on Track to Hit 40 Million Sq Ft Annually

According to Arpit Mehrotra, Managing Director, Office Services at Colliers India, GCC leasing could soon reach 35–40 million sq ft annually, accounting for 40–50% of total office demand.

Since 2020, GCCs have leased about 117 million sq ft, or roughly 38% of India’s total Grade A office absorption. Their annual uptake has nearly doubled—from about 16 million sq ft in 2020 to nearly 30 million sq ft in 2025—reflecting sustained expansion.

US-headquartered firms have dominated activity, contributing nearly 70% of GCC leasing since 2020. However, this dominance is expected to moderate as European and British firms expand their presence.

Distinct Regional Demand Patterns Emerging

The report identifies differing sector preferences among GCC investors:

• US companies: Technology-led demand (47%), followed by BFSI (21%)
• EU companies: Strongly anchored in engineering & manufacturing (~60%)
• UK companies: More diversified, led by BFSI (29%) and consulting (23%)

These trends indicate a broadening occupier mix, reducing reliance on a single sector and strengthening market resilience.

Trade Deals to Accelerate Office Expansion

Tariff reductions and market access provisions under proposed trade agreements are expected to spur corporate expansion. Examples cited include:

• Potential elimination of tariffs on US industrial goods
• EU tariff cuts on machinery, steel, chemicals, and pharmaceuticals
• Reduced auto duties under quota systems for multiple partners

Such measures could make India more attractive as both a manufacturing base and services hub, prompting multinational firms to establish or enlarge capability centres.

From Back Offices to Innovation Hubs

“GCCs will continue to anchor India’s office demand and support diversification of occupiers,” said Vimal Nadar, National Director and Head of Research at Colliers India. He added that while technology will remain a key driver, BFSI and engineering firms could together account for 40–50% of leasing demand in 2026.

This transformation reflects a broader shift: GCCs are no longer transactional support units but high-value hubs handling product development, AI, analytics, and engineering functions. India’s deep talent pool and cost advantages continue to reinforce its appeal as a global operations base.

Also Read: South India’s Data Centre Market to Witness 65% Capacity Growth by 2030

The post GCC Boom Set to Power India’s Office Market: Global Firms May Drive Up to 50% Demand Surge appeared first on Square Feat India.

For the quarter ended December 31, 2025, revenue rose 21% year-on-year to ₹11,787 million, while Net Operating Income (NOI) increased 19% YoY to ₹10,407 million. The REIT also declared robust distributions of ₹6,953 million, translating to ₹1.57 per unit.

Leasing Momentum Remains Strong

KRT continued to see healthy demand across its portfolio during Q3 FY26, leasing 0.6 million square feet during the quarter. This took cumulative leasing for the first nine months of FY26 to 2.4 million square feet, underscoring consistent occupier interest.

Portfolio occupancy stood at 92%, supported by a strong leasing pipeline that management says reinforces confidence in sustained business momentum.

A notable trend during the year has been expansion by existing tenants, which accounted for over half of year-to-date leasing. This reflects strong tenant satisfaction and long-term relationships across KRT’s Grade-A office assets.

The REIT has also maintained a disciplined focus on rental growth, with over 90% of YTD leasing carrying built-in annual escalations, strengthening future income visibility. Additionally, KRT reported an embedded mark-to-market potential of 22%, supported by a well-phased lease expiry profile.

Improving Balance Sheet and Cost of Debt

On the financial front, Knowledge Realty Trust continued to strengthen its balance sheet:

• Average cost of debt reduced by ~19 basis points, from 7.44% in September 2025 to 7.25% in December 2025
• Reduction driven by repayment of high-cost debt and benefit from repo rate cuts
• Loan-to-Value (LTV) remains low at 18%, providing significant headroom for future inorganic growth

The REIT’s conservative leverage and improving funding costs position it well amid evolving interest rate conditions.

Growing Global Recognition and Investor Base

December 2025 marked an important milestone for KRT, as it was included in the FTSE EPRA Nareit Global REITs Index, enhancing its global visibility among institutional investors.

The REIT also reported broadening participation across investor categories, with its unitholder base doubling since listing, signalling rising confidence in India’s office REIT story.

Management Commentary

Commenting on the results, Shirish Godbole, Chief Executive Officer, said the trust delivered strong operating performance and healthy distributions during the quarter.

He highlighted the inclusion in the FTSE EPRA Nareit index as a sign of growing global recognition and noted that KRT enters the final quarter of FY26 with strong momentum, a resilient balance sheet, and visible growth levers.

Quaiser Parvez, Chief Operating Officer, said leasing during Q3 was driven largely by expansions from marquee tenants, resulting in strong revenue growth. He added that cumulative leasing of 2.4 million square feet at an average spread of 25% reflects robust demand from both global and domestic occupiers.

According to management, KRT’s portfolio—concentrated in India’s strongest office markets—positions the REIT well to deliver sustainable long-term growth for unitholders.

Investor Interaction

Knowledge Realty Trust has released its detailed earnings presentation and related investor materials on its website. The REIT is also hosting an investor conference call on February 5, 2026, to discuss Q3 FY26 performance, with a replay to be made available subsequently.

Also Read: Knowledge Realty Trust Reports 20% Rise in NOI, Declares ₹6,900 Million Distribution in Q2 FY26

The post Knowledge Realty Trust Posts Strong Q3 FY26 Results; Revenue Jumps 21%, Distributions at ₹6,953 Million appeared first on Square Feat India.

The report reveals that by the end of 2024, India already had more than 1,700 GCCs employing over 1.9 million professionals, with the GCC market size surging from USD 30 billion in 2019 to approximately USD 64 billion in 2024. By 2030, the market is expected to nearly double to USD 105–110 billion, growing at a CAGR of 10%.

Anuj Puri, Chairman – ANAROCK Group, said: “India’s GCC landscape has expanded rapidly, fuelled by demand from IT/ITeS, BFSI, Healthcare & Life Sciences, and Engineering R&D. The sector’s ability to attract and retain global talent, combined with India’s cost efficiency and skilled workforce, continues to drive demand for premium office spaces. The footprint is now rapidly expanding beyond the top 7 cities into Tier-2 hubs like Jaipur, Indore, Surat, Kochi, and Coimbatore — these cities are emerging as the next big GCC growth frontiers.”

GCCs Power Record Office Leasing in 2025

The report highlights the outsized role GCCs played in India’s office market resilience amid global headwinds:

• In 2025, total gross office leasing across the top 7 cities reached an all-time high of 80.5 million sq. ft. — with GCCs alone accounting for over 32.5 million sq. ft. (more than 40% of total leasing).
• Bengaluru remains the undisputed leader, hosting over 875 GCC centres (29% of India’s total) and capturing more than one-third of the country’s GCC leasing in 2025.
• Pune followed with 15% share, while Delhi-NCR and Hyderabad each contributed 14%.

Grade A Office Stock & Supply Dynamics

• Grade A office stock across the top 7 cities now stands at approximately 800 million sq. ft., with Bengaluru and NCR together accounting for nearly 50% of the total supply.
• New office completions in 2025 exceeded 51 million sq. ft. — an 8% increase over 2024.
• Southern markets (led by Bengaluru, Hyderabad, Chennai) dominated the supply pipeline, contributing around 51% of new additions.
• Net absorption in 2025 crossed 58 million sq. ft., underscoring sustained occupier demand.

Raj Menda, Chairman – FICCI Committee on Urban Development and Real Estate & Chairman of Supervisory Board, RMZ Corp, remarked: “For three decades, India’s office real estate was seen as a cost line to be managed. Today, it is a strategic lever — shaping where global capital flows, where high-value jobs are created, and where India’s young workforce chooses to live. Grade A buildings are no longer just concrete and glass; they are operating systems for productivity, culture, technology, and climate resilience.”

Indian REITs: Still Early Days, Massive Headroom

Despite rapid progress since the first REIT listing in 2019, India’s REIT market remains under-penetrated:

• Five listed REITs have achieved a market capitalization of nearly USD 18 billion.
• REITs currently represent only ~20% of total institutional real estate.
• Out of 520 million sq. ft. of REITable office stock, only about 165 million sq. ft. is listed — leaving significant headroom for institutionalisation.
• Future growth will come from diversification into data centres, logistics parks, and retail malls.
• Residential REITs may take longer due to regulatory and market complexities, but progress is expected over time.
• With policy support and rising institutional participation, REIT penetration could rise to 25–30% by 2030, positioning India among the world’s fastest-growing REIT ecosystems.

Broader Economic & Policy Tailwinds

• FDI inflows rose to a provisional USD 81.04 billion in FY 2024–25 — a 14% increase from USD 71.28 billion in FY 2023–24.
• Demand is diversifying: coworking (23%), BFSI (18%), consultancy, and manufacturing are gaining share alongside IT/ITeS.
• Proactive state-level GCC policies and central government support continue to strengthen India’s position as a preferred global delivery hub.

The Big Picture

India’s office market in 2025 proved remarkably resilient — posting record leasing, strong supply addition, and deepening institutionalisation through REITs. GCCs are no longer just cost centres; they are high-value job engines, talent magnets, and anchors of premium office demand — increasingly spreading to Tier-2 cities and reshaping urban India.

With 2,400+ GCCs and 2.8 million jobs projected by 2030, India is firmly decoding the future of global work and commercial real estate.

Also Read: India to Lead APAC Office Market Growth in 2026 Driven by Strong GCC Demand

The post India’s GCC Boom: 2,400 Centres, 2.8 Million Jobs by 2030 appeared first on Square Feat India.

According to Vestian Research, Q4 2025 alone accounted for USD 3.73 billion, the highest quarterly inflow ever recorded in Indian real estate. This marked a 112% jump quarter-on-quarter and underscored renewed investor confidence after a volatile first half of the year.

Significantly, over 20% of foreign investments in Q4 2025 were directed toward sustainable projects, highlighting a decisive shift in capital allocation strategies as global investors increasingly prioritise ESG-aligned assets.

Q4 Surge Powers Record Annual Investments

Institutional investments in 2025 rose 19% over 2024 and 88% compared to 2023, cementing the year as the strongest on record for Indian real estate capital inflows.

After a subdued Q1, investment momentum steadily improved through the year before peaking sharply in Q4, when inflows more than doubled compared to the previous quarter.

The late-year surge reflects renewed deal closures, improved macro visibility, and stronger appetite for income-generating and future-ready assets.

Commercial Assets Dominate on GCC Demand

Commercial real estate emerged as the clear beneficiary of investor interest in 2025. The segment accounted for 63% of total investments, up sharply from 35% a year earlier.

• Commercial investments touched nearly USD 5.1 billion, a 113% YoY increase
• In Q4 alone, commercial assets attracted USD 2.3 billion, making up 61% of quarterly inflows

The strong performance was driven by sustained demand from Global Capability Centres (GCCs), which continue to expand their office footprints across key Indian cities amid long-term cost and talent advantages.

Industrial & Warehousing Sees Sharp Capital Upswing

The industrial and warehousing sector emerged as one of the fastest-growing segments in Q4 2025, reflecting India’s consumption-led growth and logistics expansion.

• Investments surged over seven times QoQ to USD 615 million
• Sector share rose to 17% in Q4, up from 5% in the previous quarter

Rising domestic consumption, e-commerce expansion, and the need for modern logistics infrastructure have significantly boosted investor appetite for large-format warehousing and logistics parks.

Residential Investments Rebound Sequentially

While residential real estate’s share remained relatively stable, the sector saw a sharp 129% quarter-on-quarter rise in investment value, reaching USD 438.4 million in Q4 2025.

This sequential recovery indicates renewed interest in select residential opportunities, particularly in high-quality, well-located projects, even as investors remain selective amid pricing and execution considerations.

Foreign Capital Makes Strong Comeback With Sustainability Focus

Foreign investments rebounded sharply in Q4 2025, rising more than tenfold QoQ to USD 1.5 billion. Despite global uncertainties keeping overseas investors cautious earlier in the year, deal activity accelerated significantly toward year-end.

Notably, over one-fifth of foreign capital deployed in Q4 was earmarked for sustainable real estate development, underscoring the growing importance of green buildings, energy efficiency, and climate-resilient assets in investment decision-making.

Co-Investments Gain Momentum Amid Global Uncertainty

As global investors sought risk-sharing structures, co-investments surged 90% QoQ to USD 1.38 billion in Q4 2025. This trend reflects growing collaboration between foreign and domestic capital to pursue large, diversified real estate opportunities.

Meanwhile, domestic investors continued to demonstrate steady confidence, with cumulative investments in 2025 rising 18% YoY to nearly USD 2.4 billion.

Industry View: Market Becomes More Resilient and Future-Ready

Commenting on the investment surge, Shrinivas Rao, FRICS, CEO, Vestian, said:

“The record USD 8.1 billion in institutional investments recorded in 2025 reinforces sustained investor confidence in India’s long-term economic fundamentals. As capital increasingly aligns with sustainability-led development, sustained GCC-driven occupier demand, and rising domestic participation, Indian real estate continues to evolve into a resilient, diversified, and future-ready investment market.”

Also Read: Indian Real Estate: Riding Higher in 2025

The post Over 20% of Foreign Capital in Q4 Poured Into Sustainable Real Estate as Institutional Investments Hit Record High in 2025 appeared first on Square Feat India.

The final quarter of the year emerged as a game changer, with Q4 2025 alone accounting for USD 4.2 billion, the highest-ever quarterly inflow recorded in the Indian real estate sector.

Domestic Capital Takes the Lead

Domestic institutional investors emerged as the primary growth engine in 2025, with investments more than doubling year-on-year to USD 4.8 billion, accounting for 57% of total inflows.

Foreign investments, while moderating by 16% YoY to USD 3.7 billion, showed clear signs of revival in the last quarter, indicating gradual recovery in global investor sentiment amid improving trade conditions and easing geopolitical uncertainty.

“Private equity investments in Indian real estate reached a new high in 2025, supported by record capital deployment in the last quarter of the year. Office assets continued to dominate, followed by residential and industrial & logistics assets,”
— Badal Yagnik, CEO & Managing Director, Colliers India

Office Assets Dominate Institutional Investments

The office segment remained the top investment destination, attracting USD 4.5 billion in 2025—nearly double the inflows seen in 2024. Office assets alone accounted for 54% of total institutional investments during the year.

Key highlights:

• Q4 2025 contributed nearly two-thirds of annual office investments
• Strong Grade A leasing activity supported investor confidence
• Increased participation from both domestic and foreign capital

The residential segment followed with USD 1.6 billion in inflows, marking a 36% YoY growth and an 18% share in total investments. Long-term demand fundamentals, favourable demographics, and joint-venture led expansion into Tier II cities continued to attract capital.

Asset-wise Institutional Investment Trends (USD million)

*Alternate assets include data centres, life sciences, senior housing, student housing, holiday homes, and schools.
Source: Colliers

Q4 2025: A Record-Breaking Quarter

Quarterly inflows peaked in Q4 2025 at USD 4.2 billion, reflecting a 123% YoY jump and a 231% QoQ rise.

Q4 2025 Asset-wise Snapshot (USD million)

REIT Momentum Strengthens Office Investment Case

The year also witnessed:

• Listing of the fourth office-focused REIT
• Portfolio expansion by existing REITs
• Higher occupancy levels and rental growth

“With over 370 million sq ft of office stock having REIT potential, we expect greater institutionalisation and consolidation in the coming years,”
— Vimal Nadar, National Director & Head of Research, Colliers India

Bengaluru and Mumbai Lead Capital Inflows

Bengaluru and Mumbai together accounted for nearly half of total investments in 2025, largely driven by large office transactions.

City-wise Investment Inflows (USD million)

Source: Colliers

Multi-city investments accounted for USD 2.3 billion, with over 40% directed towards residential projects, highlighting growing investor appetite for early-stage housing developments and emerging markets.

Outlook for 2026

Colliers expects institutional investments to remain robust in 2026, supported by:

• Growing domestic capital pools
• Improving global risk appetite
• Strong economic fundamentals

Priority segments:
Offices
Industrial & logistics parks
Residential housing

Also Read: From Crisis to Opportunity: Stressed Real Estate Projects Emerge as India’s Next Investment Frontier

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With the current date marking the final days before the process unfolds, interested parties are urged to prepare for online submissions. These plots, located in high-potential areas such as Ghansoli, Kharghar, and Panvel, promise robust returns amid the region’s 7-10% annual property appreciation. The leasehold offerings, initially for 30 years with freehold conversion options per CIDCO’s July 2025 policy, exclude additional fees like transfer charges, making them attractive for long-term planning.

Auction Timeline and Participation Essentials

To maintain transparency, CIDCO has outlined a precise schedule. Applications and document submissions open on December 1, 2025, at 11:00 AM and close on December 23, 2025. The e-tender window for close bids begins December 2, 2025, at 11:00 AM, running until December 22, 2025, with EMD payments starting at ₹28,500 (plus GST). The main e-auction event is set for December 23, 2025, from 11:00 AM to 5:00 PM, requiring an EMD of ₹1,200 (plus GST). Results will be declared on December 24, 2025, at 3:00 PM.

A document fee of ₹2,500 (plus GST) must be paid by December 1, 2025, to access the scheme booklet and plot details. All processes are digital, hosted on https://eauction.cidcoindia.com/, ensuring ease for remote bidders. Plot sizes vary—from compact 33×33 sq ft bungalow sites to expansive warehouse parcels—with base prices tailored to location and utility, excluding GST, taxes, and rents.

Varied Plot Types Catering to Diverse Needs

The 20 plots offer versatility: residential options for family homes and gated communities; commercial spaces ideal for retail and offices; luxurious bungalows in green pockets; service industry zones for light manufacturing; and warehouses/storage facilities optimized for logistics near key highways and the upcoming airport. This mix addresses the surging demand in Navi Mumbai, where industrial growth is projected to add 50,000 jobs by 2027.

Experts view this as a timely release. As Manohar Shroff, Senior Vice President of CREDAI-MCHI Navi Mumbai, commented on comparable schemes, “Plots in developing nodes like these will attract strong bidding due to their strategic positioning.” Recent CIDCO auctions, including a record ₹2,125 crore sale in Kharghar in November 2025, underscore the market’s vigor, generating revenue while spurring construction and employment.

Residential buyers can leverage PMAY subsidies up to ₹2.5 lakh, slashing costs by 20-30%, while commercial and industrial plots enjoy FSI up to 2.0 for vertical growth. A three-month cooling-off period post-submission applies, with EMD forfeiture for withdrawals.

Steps to Bid and Secure Your Plot

Begin by visiting the CIDCO portal on December 1, 2025, to download the booklet. Register with KYC documents, pay the fee, and review specifics like reserve prices and zoning. For assistance, reach the Marketing Manager (Commercial) at CIDCO’s Belapur office: Third Floor, Raiwadi, CBD Belapur, Navi Mumbai (Helpline: 022-20871184 or 07313668393;

As Navi Mumbai evolves into Maharashtra’s economic powerhouse, this auction—part of quarterly events potentially releasing over 100 plots in 2026—presents a gateway to sustainable investments. With infrastructure like the Mumbai-Pune Expressway enhancing accessibility, these plots blend residential charm with commercial promise, solidifying the city’s appeal.

Also Read: CIDCO Announces First-Ever Housing Scheme on First-Come, First-Served Basis for 4,508 Homes

The post CIDCO Puts 20 Plots Up for Auction in Navi Mumbai: Includes Bungalows and Warehouses for Lease appeared first on Square Feat India.

Large Enterprise Deal Boosts Pune’s Premium Office Market

The leased office spans Smartworks’ Marisoft campus, a strategic commercial cluster in Kalyani Nagar that offers strong connectivity, robust social infrastructure, and access to a deep talent pool.

The integrated workspace includes collaboration zones, meeting rooms, recreational areas, convenience retail, wellness amenities, and fully tech-enabled infrastructure—core to Smartworks’ campus-led managed office model, which has been powering its enterprise expansion.

Enterprise Demand Driving Growth

“Our large-format campuses are built for scale, speed, and unified workplace experiences,” said Neetish Sarda, Founder & Managing Director, Smartworks.
He noted that the 1,000+ seat cohort, which accounted for only 12% of rental revenue three years ago, has now tripled to 35%, underscoring the company’s rising share of large enterprise clients.

Smartworks’ model allows businesses to expand across multiple cities, grow within existing clusters, or consolidate fragmented offices into larger, unified campuses—an increasingly preferred approach for GCCs and multinationals.

Financial Performance Reflects Robust Momentum

Earlier this month, Smartworks reported strong Q2 FY26 results, including:

• 21% YoY growth in revenue to ₹4,248 million
• 46% YoY rise in normalised EBITDA
• Healthy EBITDA margin of 16.4%
• Net-debt negative position
• Operating cash flow of ₹614 million

These numbers reflect Smartworks’ disciplined expansion strategy, improving operational efficiency, and the growing acceptance of its managed campus format across India’s prime office markets.

Smartworks’ Pan-India Footprint

With a ~12.7 million sq ft portfolio across 14 cities, Smartworks caters to a diversified client mix including GCCs, Forbes 2000 companies, multinationals, and large Indian enterprises.
The company notes that 30% of its rental revenue now comes from clients operating across multiple locations—evidence of its growing relevance in nationwide enterprise workspace strategies.

Analysis — Large Enterprise Leasing Continues to Power Managed Office Growth

The Smartworks–Wolters Kluwer deal reflects the continued shift towards flexible, scalable, experience-led campuses among global and domestic enterprises. Pune, particularly the Kalyani Nagar–Yerwada belt, remains a hotspot for GCCs and tech-driven companies, making the lease a timely expansion move.

Smartworks’ strong quarterly performance and rising share of large-format deals also indicate:

• GCC consolidation trends are accelerating
• Enterprises prefer managed campuses over fragmented traditional offices
• Pune’s office market continues to attract high-quality occupiers

With demand for flexible yet controlled work environments growing, Smartworks is well-positioned to capture a larger share of India’s evolving office landscape.

Also Read: Corporate Biggest User Of Coworking Spaces.

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Mumbai, November 11, 2025:
Awfis Space Solutions Limited, one of India’s leading flexible workspace providers, reported a 44% year-on-year rise in operating EBITDA for the first half of FY26, driven by expanding demand from enterprises and GCCs.

Operating revenue for H1 FY26 stood at ₹702 crore, up 28% YoY, while PAT rose 49% to ₹26 crore (excluding exceptional items). The company achieved an EBITDA margin of 36.9%, a gain of 430 basis points over the previous year.

In Q2 FY26, Awfis posted ₹367 crore in operating revenue and ₹16 crore in PAT, reflecting consistent growth momentum through the quarter.

Expanding Portfolio and Enterprise Focus

As of September 30, 2025, Awfis managed 247 centers with 1.7 lakh seats across 8.4 million sq. ft., including spaces under fit-out and signed LOIs.

The company added 14,000 new seats in H1 FY26 and 8,000 seats in Q2, marking a year-over-year increase of 35,000 seats. Notably, 100% of new supply was in Grade A assets, with 70% in Grade A+ developments.

Awfis currently operates 26 premium centers — including 21 Gold and 5 Elite centers — catering to large corporates, GCCs, and enterprise clients. During H1 FY26, the company secured 5,000 seats from over nine large corporates and MNCs, with 10 GCCs signing up across its Elite centers.

Strategic Shift Toward Premium, Enterprise-Grade Workspaces

Commenting on the results, Amit Ramani, Chairman and Managing Director, Awfis Space Solutions Limited, said:

“Our operating performance underscores the strength of our execution and the maturity of our enterprise client base. The growing contribution from the 500+ seat cohort, now forming 34% of our portfolio, reflects the stability and stickiness of our large clients.”

He added that Awfis is now moving up the value curve — focusing on premium Grade A buildings and enterprise-driven locations, while continuing expansion in Tier 2 cities where supply grew 28% YoY.

Awfis Transform to Drive Next Growth Phase

Awfis also announced the subsidiarization of Awfis Transform, its design and build vertical, which will now operate as a wholly owned subsidiary. The move aims to provide greater operational flexibility, enabling the unit to pursue opportunities in new sectors such as retail, hospitality, and commercial interiors.

This restructuring is expected to enhance transparency in performance metrics and accelerate diversified growth for the group.

Outlook

With an integrated ecosystem covering flexible workspace operations, allied services, and design-build expertise, Awfis is positioning itself for sustained, profitable growth. The company’s strategy combines premium execution in top metros with measured expansion in emerging markets, aligning with evolving enterprise workspace preferences.

Also Read: Awfis expands its footprint in Kolkata

The post Awfis H1 FY26 Operating EBITDA Jumps 44% YoY; Revenue Up 28% Amid Strong Enterprise Demand appeared first on Square Feat India.

Bengaluru-based managed workspace provider Urban Vault (UV) has announced a major expansion in Pune with the launch of two new premium centers — Baner Central and Phoenix Fountainhead, Viman Nagar — adding 2,500 seats across nearly 1 lakh sq. ft. of Grade-A workspace.

With this expansion, Urban Vault’s total Pune portfolio has grown to 3,500 seats across 1.4 lakh sq. ft., spread across three strategic locations: two in Baner and one in Viman Nagar. The move strengthens the company’s position in Pune’s fast-growing managed office and flex space segment, driven by strong enterprise demand and hybrid workspace adoption.

Strong Enterprise Demand Driving Growth

Urban Vault has taken up 42,000 sq. ft. at Phoenix Fountainhead, Viman Nagar, adding 1,200 seats in a high-demand commercial zone. The new center has already onboarded enterprise clients such as Flexisales and Premier Energies, highlighting the increasing traction among corporates seeking flexible, high-quality managed spaces.

In Baner, the company has added another 50,000 sq. ft. center at VJ Indiworks, Baner Central, offering 1,300 seats designed for both startups and established firms. The workspace features collaborative zones, premium meeting rooms, and customizable private suites to accommodate diverse team needs.

Baner and Viman Nagar Emerge as Flex Space Hubs

Baner and Viman Nagar have emerged as Pune’s top-performing micro-markets for managed office operators, owing to robust infrastructure, IT presence, and proximity to residential catchments.
Urban Vault’s new centers are positioned to cater to mid-size enterprises, IT firms, and startups seeking plug-and-play, cost-efficient work environments with premium amenities.

The company’s Pune workspaces are priced between ₹9,000–₹10,000 per seat, balancing affordability with Grade-A quality.

CEO Speaks: “Pune Is Among India’s Most Resilient Office Markets”

Commenting on the expansion, Amal Mishra, CEO of Urban Vault, said:

“Pune continues to be one of India’s most dynamic and resilient office markets, driven by a strong base of IT, manufacturing, and startup ecosystems. Our expansion at Baner Central and Phoenix Fountainhead reinforces our commitment to providing flexible, high-quality workspaces that cater to the evolving needs of modern enterprises.”

He added that Urban Vault aims to deepen its presence in key business hubs and strengthen partnerships with enterprise clients seeking scalability, efficiency, and flexibility.

National Expansion and Strong Financials

With this launch, Urban Vault’s national portfolio has expanded to 2.6 million sq. ft., managing over 45,000 seats across Bengaluru, Pune, Gurgaon, and other cities.

The company reported a ₹120 crore turnover in FY25, marking over 70% year-on-year growth and an 18% profit after tax (PAT), underscoring its strong financial position and operational scale.

Industry Context

Pune’s managed office space market has witnessed rapid growth post-pandemic, led by demand from enterprises seeking flexibility, managed services, and scalability without capex commitments.
Urban Vault’s latest expansion aligns with this trend, positioning the firm as a key player in Pune’s premium workspace segment alongside operators such as WeWork, Smartworks, and Tablespace.

Also Read: Managed Co-Working Player Urban Vault to Add 10,000 Seats in Bengaluru within This Quarter

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