Are Flexible Office Spaces The Biggest Opportunity in Indian Real Estate Today?

With the statistcs coming, there is no doubt that flexible office deals in India are expanding as corporations acquire larger office spaces. Thi means a very big opportunity for real estate landlords, property developers and real estate brokers in India.

According to many operators, flexible workspace providers are leasing larger facilities to accommodate the demand of companies and to provide renters a campus-like environment.

Prior to Covid, the majority of operators acquired fewer than 50,000 square feet of space, but in the last year, the majority of them had acquired more than 100,000 square feet. Some have even leased 500,000 square feet.

As per Skootr co-founder Ankit Jain, corporate occupants are interested in portfolio re-optimization and focusing on contemporary real estate trends, such as managed office spaces. He also adde that their monthly business has tripled as a consequence of a significant rise in demand from a single tenant for space surpassing one million square feet.  

Smartworks just leased 700,000 square feet at Bengaluru's Vaishnavi Tech Park in the biggest flex office transaction in the country.

Schneider Electric IT Business India leased 350,000 square feet from Table Space Technologies in the Outer Ring Road neighbourhood of Bengaluru. In the same building, Microsoft has also leased an additional 300,000 square feet of flexible office space.

WeWork India signed a 660,000-square-foot lease in Noida.

The founder of Smartworks, Neetish Sarda, said that the firm has always negotiated lengthier leases than other co-working operators due to the fact that tenants want a holistic experience. Nevertheless, our average transaction size has grown.

From the first half of 2020 to the first half of 2022, the average transaction size of co-working spaces was over 50 percent greater than that of other sectors, according to a research by a professional real estate firm.

The Founder of a very successful workspace in Mumbai also feels that larger workspaces create an atmosphere centred on experiences by including sports zones, breathtaking scenery, and creative office spaces of different sizes.

With all these factors and the new found freedom after Covid, it seems that large, flexible office work spaces are here to stay.