India switches to flexible real estate from coworking spaces
Co-running operators are opening new centers to meet the rising demand for flexible workspace, and according to Anarock, their share of the average office space rental increased to 20% from January to June. Real estate agent Anarock joined this phase in April by acquiring a 75% share in myHQ, a booking website for co-running spaces, through a stock and coin transaction valued at around Rs. 125 crores. MyHQ, a Delhi-NCR-based company, has more than 50,000 subscribers.
According to the statistics, in the first half of this year, the total internet absorption of office space across seven major cities was 20.8 million rectangular feet. A 20 percent co-running area percentage was included in this. Its share of the roughly nine.33 million square feet of online office absorption in H1 (January-June) 2021 was just about 6%.
Corporate clients choose co-running centers because they have a regulated work environment, lower capital costs, and more freedom to scale up or decrease their operations. If we look at a city-smart breakdown, Pune has the most demand for co-working space since 45 percent of the 2.55 million square feet of total office space that was leased online was designated as flexible space.
In Bengaluru, the online leasing of office space reached 6.1 million square feet during the first half of this year. A total of 23% of the territory was designated for co-running. Out of the total office space that was leased online, which was 2.75 million square feet and 1.85 million square feet, respectively, co-running spaces made up 15% of both the Delhi-NCR and Chennai markets.
In the Mumbai Metropolitan Region (MMR), there were 2.91 million square feet of office space that were leased online, with co-running players contributing 11% of that total.
Four.25 million square feet of office space were leased online in Hyderabad, with a co-running percentage of thirteen percent. In contrast, Kolkata saw the leasing of 0.4 million square feet, with a co-running percentage of fourteen percent. In contrast, the proportion of the IT/ITeS sector decreased from 49% in the first half of 2021 to 36% in the second half. But the main reason for this drop is that many IT companies now also favor flexible workspaces over conventional ones.
Leading players in the coworking phase, which includes managed office space, include WeWork India, Smartworks, Awfis, CoWrks, The Executive Centre, Skootr, Simpliwork Offices, IndiQube, The Office Pass, 91Springboard, and 315Work Avenue. Recently, Smartworks
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