“The Flexible Workspace Market in India has been growing at a robust pace with presence of more than 300 Operators, operating a total of more than 900 Co-Working Locations”
Expansion in Tier 2 and Tier 3 Cities: Companies are focusing on expanding in cities such as Indore, Bhubaneswar, Calcutta, Chandigarh, Kochi, Lucknow and others. For instance, Incuspaze has centres in Indore, Kochi, Lucknow and Trivandrum, Regus has expanded in Indore, Visakhapatnam, Kolkata, Jaipur and Chandigarh and Awfis has recently launched a centre in Chandigarh and is looking to expand into cities such as Jaipur, Kochi, Indore and Bhubaneswar by 2021, while simultaneously strengthening its position in tier I cities.
Increasing Average Deal Size: Flexible workspace operators are taking over medium (centres with size between 20,000 sq ft to 100,000 sq ft) and large sized centres (centres with size >100,000 sq ft) with increasing demand from large enterprises and to control management and operating cost of multiple centres. For instance, Smartworks has leased 0.5 million sq ft in Pune in order to build a flexible workspace which will be operational from 2021 and WeWork’s centre in Mumbai which is known as Chromium is build on 285,000 sq ft of land area.
Evolving Business Model: In order to bring profitability and sustainability in business flexible workspace operators are changing their operating model from long term lease model to revenue sharing partnership with landlords and management partnership. For instance, Awfis has introduced Managed Aggregation Model (MAM) and Awfis Enterprise Solution (AES). Under our MA model, it ties up with landlords of underutilized commercial spaces and shares the revenue with landowners.
Rising Real Estate Cost: Real estate costs are second highest expenditure of the companies after employee wage. Companies are eager to implement flexible office ICT solutions to utilize their existing workspace more efficiently, rather than increasing real estate space, which is a much larger expenditure. Real estate prices in Delhi CBD, Bangalore CBD and Mumbai CBD have increased by 77.1%, 60.0% and 40.0% respectively in 2019.
The report titled “India Flexible Workspace Market Outlook to 2025- By Type (Hybrid Spaces, Serviced Spaces and Co-Working Spaces), By City (Bangalore, Mumbai, Delhi NCR, Pune and Hyderabad) and By End Users (Enterprises, MSME’s/Start-Ups and Entrepreneurs/Freelancers)” by Ken Research (Online Market Research) suggested that the India Flexible Workspace Market has been increasing due to emerging domestic and foreign operators, increasing number of using flexible workspaces, government initiatives to boosts start-ups, development of co-working spaces outside office building, increasing rents of commercial office and expansion in peripheral regions. The market has registered CAGR of 31.4% and 39.4% on the basis of supply and demand respectively during the period 2016-2019.
Key Segments Covered:-
By Type of Flexible Workspace
By End Users
Key Target Audience:-
Flexible Workspace Operators
Commercial Real Estate Companies
Venture Capitalist and PE Firms
Real Estate Consultant
Office Furniture Providers
Time Period Captured in the Report:-
Historical Period – 2016-2019
Forecast Period – 2019-2025F
Companies Covered in the Report:-
Flexible Workspace Operators
Awfis Space Solutions
The Executive Centre
Vatika Business Centre & Co-working Spaces
For More Information, refer to below link:-
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Ankur Gupta, Head Marketing & Communications