The firm that operates around 2.5 mn sft serviced offices across major cities plans to add another 2 mn sq ft space by the end of 2021— the majority of it coming up in Bangalore.
“Covid-19 has accelerated the trend of managed spaces in the country. Going ahead, the hybrid model of workspace will be the future,” said Rishi Das, Cofounder, IndiQube.
It counts Unacademny, Makemytrip, Philips and EY among its clients. The company said it will focus more on managed spaces to cater to the growing demand from large corporates.
“We had slowed down expansion in other cities due to Covid-19 as the focus was to stabilise the existing centres. By the end of 2021, we plan to have 70,000 seats under management,” he added.
As large corporations return to the workplace, they are likely to further leverage flexible space to reduce capital expenditure and create cost savings, while allowing for split teams and de-densification requirements.
“We are also seeing good opportunities to take over older commercial buildings and release them. We will add 1 mn sft through refurbishing older buildings,” said Das.
Irrespective of several short-term disruptions and challenges, increased demand from large enterprises, will support the growth of the flex space market to more than 50 mn sq. ft. by 2023.
It is anticipated that flexible space will grow by an average of around 15-20% per annum over the next three-to-four years, although this trajectory will not be linear.
“While the flex-space market more than tripled in the last 3 years, the momentum going ahead will be relatively slower. Players are likely to tread cautiously, and the overall market is expected to expand 1.5 times from the current size,” Samantak Das, Chief Economist and Head of Research & REIS, JLL India.
At present, Bengaluru and Delhi NCR together account for more than 50% of the flex space stock in India, with Bengaluru housing around 10.6 mn sq. ft. of such spaces.