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52% Growth Forecasted for Flex Spaces, Hitting 81 Million Square Feet by 2025
Flexibility is becoming increasingly important in today's ever-changing business landscape, particularly in India, where there has been a significant increase in demand for more flexible work environments. If current trends continue, the coworking space in India is expected to expand by 52% by 2025, reaching an impressive 81 million square feet.
More than 760,000 seats are available across flexible space centres located at over 1,000 sites throughout the country. Recent studies show that the stock of flex spaces has already reached 53.4 million square feet and is expected to grow at a Compound Annual Growth Rate (CAGR) of 23% by 2025.
The trend towards flexible workspaces in India began to gain momentum around 2015-16. Although initially fragmented, it has since evolved into a more organized industry that has caught the attention of startups, small businesses, and large corporate entities.?
The prime benefits of flexible spaces include- Affordability, Adaptability, and Tech-savvy environments.
Moreover, with ongoing global uncertainties, including economic fluctuations and fears of recession, businesses view flexible spaces as a practical solution, providing them with the resilience needed to tackle these challenges.
With the rise of hybrid work models, the demand for flexible workspaces is expected to increase even further. Projections indicate that by 2025, flexible offices will account for around 25% of total office space absorption in India, compared to the mere 2% they held in 2016.
Flexible spaces offer various options, including fixed desks, flexi desks , managed offices , private offices, and virtual offices . Coworking spaces (fixed and flexi desk) are particularly praised for their flexibility, while managed offices provide a more structured environment.
Significant markets and micro-markets like Whitefield in Bengaluru , Hitec City in Hyderabad , and Andheri (E) in Mumbai emerged as coworking hotspots in India.
In conclusion, the future of office spaces in India is evident. As the nation adapts, the skyline of its corporate world will continue to transform, making way for a more collaborative and adaptable work environment.
Hyderabad's Historic 2024: A Record 21.5 Mn Sq. Ft of New Office Space
Hyderabad is renowned for its rich history and delicious biryanis, but it's now making headlines for its explosive growth in office spaces. This year, the city is set to welcome a record high of 21.5 million square feet of new office territory!
Hyderabad has experienced an impressive 13% annual growth in this sector from 2017 to 2024, surpassing the national average of 7% for India's top six cities. As of mid-2023, Hyderabad boasted 14.2% of the total office offerings among these cities, and this number is expected to grow to 15.5% by the end of March 2024.
Despite the pandemic lockdowns in 2022 and 2023, more businesses are returning to physical offices, and many new ones are setting up office spaces, resulting in a drop in the city's vacancy rates from 16.5% in 2021 to a healthier 13.8%.
However, the forecast for 2024 suggests that the influx of new office space may lead to a slight dip in occupancy rates for Grade A office spaces. The expected occupancy rate could be around 81-81.5%, a modest drop from 86% in 2023.
On the other hand, this surge in Hyderabad office space supply could be a boon for new tenants. While existing spaces may see a steady rent rise, new spaces offer more flexible terms, resulting in cost savings for budding enterprises.
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The IT, BFSI, and pharma/life sciences sectors are driving this demand, and flexible spaces in Hyderabad are predicted to see a spike in popularity soon. The northwest region of Hyderabad, which includes hubs like Hitec City , Gachibowli , and the Financial District, is the epicentre of this office space boom.
Smartworks' Exciting Expansion in Chennai
Smartworks , a leading provider of coworking spaces in India , has recently opened its newest location, Olympia Pinnacle, in Chennai . This newly launched centre is a significant achievement for the company, as it now manages an impressive 500,000 sq ft of flexible workspaces in the city.
Imagine having access to a well-designed workspace in the heart of Chennai, located on Perungudi -Thoraipakkam Road. This space is not just any ordinary workspace; it has been meticulously designed to cater to professionals like you. It provides seamless connectivity to major transportation options such as rail, road, and the upcoming metro line. Moreover, the location is surrounded by upscale hotels, various restaurants, and essential amenities, making it an ideal choice for after-work activities.
Smartworks' existing locations, such as Guindy , Teynampet , and OMR Road , are already home to diverse businesses, highlighting companies' trust and value in Smartworks' services.
What is the secret behind Smartworks' success??
According to Neetish Sarda , the Founder and CEO of Smartworks, the company has learned the magic formula of blending adaptability with modern amenities and an engaging community. He emphasized that their workspaces are about getting work done and creating an environment that fosters creativity, promotes collaboration, and ensures businesses thrive.
Smartworks is making waves in Chennai and nationwide in 14 major cities. With over 40 centres spanning a colossal 8 million square feet, they are a force to be reckoned with. Some big-league players from the Forbes 2000 and Fortune 500 list have established their offices within their spaces, showcasing the brand's calibre.
Most In-Demand Locations This Week-
Metro City: Delhi
Micromarket: Connaught Place & Nehru Place
Non-Metro City: Kochi
Micromarket: Ernakulam