Your Weekly Dose of News from the Commercial Real Estate Industry
Smartworks Secures Rs 168 Crore to Accelerate Expansion
Managed workspace leader Smartworks has raised Rs 168 crore ($20.24 million) in its latest funding round, driven by key investors including Keppel Ltd. , Ananta Capital , Family Trusts, and several high-net-worth individuals. The funds aim to fuel the company's expansion and general corporate growth.
Smartworks continues to dominate the Indian managed workspace sector, with new additions such as Golf View Corporate Towers in Gurugram, Logix Cyber Park in Noida, and Amar Tech Center in Pune. Keppel Ltd, a long-standing investor since 2019, emphasises its commitment to supporting Smartworks' growth, highlighting the firm's rapid expansion to 41 centres across 13 cities.
Founder Neetish Sarda expressed gratitude for the investors' confidence, underscoring the strategic use of the raised capital for business growth. Keppel's CEO of Real Estate, Louis Lim , reiterated the importance of their partnership in enhancing India's commercial office landscape.
Flexible Office Leasing Hits Record High in Q2 2024
According to Colliers India, leasing activity for flexible office spaces in India reached a record high from April to June 2024, with 2.6 million square feet leased. This milestone reflects the growing demand for agile workspaces as businesses adapt to modern needs.
Despite WeWork Global exiting the Indian market, the sector remains robust. In the first half of 2024, flexible office operators leased about 4.4 million square feet, underscoring occupiers' increasing preference for flexible workspaces. Overall, office space demand surged 8% in Q2, driven by solid leasing activities in Mumbai, Hyderabad, and Bengaluru.
The demand for quality office spaces is projected to exceed 50 million square feet for the third consecutive year in 2024, bolstered by India's resilient economy and easing global financial challenges. This continued growth indicates strong confidence from occupiers and investors in the Indian office market.
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Surge in Flexible Office Space Adoption | CBRE Survey
A recent 世邦魏理仕 South Asia survey reveals a significant shift towards flexible office spaces. By 2026, 58% of companies are expected to have over 10% of their office portfolio in flexible workspaces, up from 42% in early 2024. The '2024 India Office Occupier Survey' indicates that 30% of businesses plan to expand their use of flexible office spaces as their primary strategy within the following year.
Flexible space operators have emerged as a pivotal force in India’s office leasing market, consistently securing over 15% of quarterly leasing. This trend is expected to persist, with the flexible space stock projected to hit 80 million sq ft by the end of 2024. Companies are also experimenting with decentralising offices, blending traditional and flexible spaces to cater to their business needs.
As the market evolves, modern and sustainable office developments with amenities like recreational facilities and public transportation access are gaining popularity. Additionally, 67% of occupiers plan to allocate 5% or more of their project budgets to ESG measures, highlighting a focus on health, safety, and wellness in return-to-office strategies.
Most In-Demand Locations This Week-
Metro City : Mumbai
Micro-market : Andheri
Non-Metro City : Jaipur
Micro-market : Vaishali Nagar