Hyderabad co-working space demand set to grow
employees, in the new normal, companies such as Awfis are expanding their footprint in Hyderabad by adding premium workspaces.
Hyderabad: Hyderabad is emerging as a key hub for flexible space providers, contributing to about eight per cent of overall India’s flex space footprint in terms of the number of centres being operated in the city.
In line with the evolving workspace requirements of large-scale enterprises and their employees, in the new normal, companies such as Awfis are expanding their footprint in Hyderabad by adding premium workspaces. The company which has set up a centre at Rajapushpa Summit in the Financial District is also rolling out more centres in the city.
Agile managed workspaces provider Smartworks, which was operating its first co-working facility at Purva Summit in Hyderabad, has recently begun operations at its second facility at Aurobindo Galaxy, where it is seeing good traction.
Neetish Sarda, founder, Smartworks, told Telangana Today, “We have 2.3 lakh sq ft of space in the second building and are planning to add more floors as the demand is surging. As the vaccination rate is increasing, we are seeing tangible momentum at our workspaces, as our spaces give clients agility to meet their specific requirements in these Covid times.”
“We are creating a huge presence in Hyderabad. We want to strengthen our footprint as we already have about 4-5 lakh sq ft space in the city. The micro markets- HITEC City and financial district are the most promising hubs for co-working space in the city and we will focus on these locations in future,” he added.
As occupiers focus on health and wellness, demand for well managed Grade-A properties with superior infrastructure is ought to increase. Inclusion of digital infrastructure and smart facilities will also contribute in achieving greater operational efficiency, reduced energy consumption, and higher customer retention.
Evolving model
The flex market in India is evolving with many enterprises incorporating a flex space component in their portfolio. There are currently 3,410 flexible centres across major cities, operating at about 70 per cent, with the trend moving towards pre-pandemic levels.
Colliers forecasts flex workspace stock to cross 60 million sq ft in metro and non-metro cities by 2023, as occupiers embrace agility and flexibility in their work models. The demand for flex space will be largely driven by Consulting, IT-BPM and E-commerce companies which are establishing multiple satellite offices in suburban locations in metro cities. Metro cities remain the stronghold of flex spaces, accounting for about 88 per cent of the total flex stock as of Q3 2021.
“Reverse migration to tier-2 cities, constant growth of new startups and increased occupier confidence driven by vaccination rates, have helped in overall improvement of the flex industry across the country. The flex market in India is evolving with many enterprises incorporating a flex space component in their portfolio,” said Ramesh Nair, CEO (India), Colliers.
After a dip in occupancy and prices during Covid, flex space is reviving in the latter part of 2021 with an average occupancy of 71 per cent. Prices per seat have also seen an improvement by 21 per cent as of September 2021, after falling by about 30 per cent during the pandemic.
Prashant Thakur, director & head, Research, Anarock, said, “Covid-19 has clearly redefined the need for office spaces; businesses are heavily focused on cost optimisation to tackle unprecedented crises such as lockdowns in the future. The cost advantage of co-working spaces clearly outstrip the possible risk factors.”
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