Flex-space market to reach 126 mn sq ft by 2028

28 Mar 2024 CW Team

The demand for flexible workspaces is being primarily propelled by sectors such as IT & ITeS, BFSI, consulting, e-commerce, manufacturing, and new-age startups, alongside the continual establishment of global captive centres (GCCs).

It is stated that opting for space from a flexible workspace operator could result in cost savings ranging from 15% to 20% for the occupier compared to traditional leasing.

Prateek Jhawar, managing director and head of Infrastructure and Real Assets Investment Banking at the company, mentioned that the Indian office market has largely remained unaffected by global macroeconomic and sectoral challenges. He noted that with an increasing number of enterprises embracing remote workplace policies, there is a notable shift towards flexible and contemporary office solutions. He further added that despite robust demand, the primary challenge for flex workspace operators could revolve around securing quality real estate supply in the central business districts of the top 7 cities at favorable rents. Jhawar also expressed an expectation for at least four established players to go public in the next 2-3 years. Moreover, it was highlighted that the average per desk cost in prominent micro-markets of Tier I metro cities like Mumbai, Bengaluru, and Delhi NCR exceeds those in prominent micro-markets of other cities by over 50%.

Presently, flex workspace operators are witnessing stable-state, centre-level Internal Rate of Returns (IRRs) ranging from 30% to 35% in both co-working and managed offices. However, as the industry matures, it is anticipated that the returns profile will gradually stabilise towards IRR levels of 20% to 25%, which still surpasses the returns provided by some other real asset classes.

According to a report by Avendus Capital, an investment bank for private equity advisory, it is anticipated that India's commercial real estate market will experience robust demand, leading to an increase of approximately 126 million sq ft at a Compound Annual Growth Rate (CAGR) of 15%, thereby tapping into a market worth USD 9 billion by 2028. The demand for flexible workspaces is being primarily propelled by sectors such as IT & ITeS, BFSI, consulting, e-commerce, manufacturing, and new-age startups, alongside the continual establishment of global captive centres (GCCs). It is stated that opting for space from a flexible workspace operator could result in cost savings ranging from 15% to 20% for the occupier compared to traditional leasing. Prateek Jhawar, managing director and head of Infrastructure and Real Assets Investment Banking at the company, mentioned that the Indian office market has largely remained unaffected by global macroeconomic and sectoral challenges. He noted that with an increasing number of enterprises embracing remote workplace policies, there is a notable shift towards flexible and contemporary office solutions. He further added that despite robust demand, the primary challenge for flex workspace operators could revolve around securing quality real estate supply in the central business districts of the top 7 cities at favorable rents. Jhawar also expressed an expectation for at least four established players to go public in the next 2-3 years. Moreover, it was highlighted that the average per desk cost in prominent micro-markets of Tier I metro cities like Mumbai, Bengaluru, and Delhi NCR exceeds those in prominent micro-markets of other cities by over 50%. Presently, flex workspace operators are witnessing stable-state, centre-level Internal Rate of Returns (IRRs) ranging from 30% to 35% in both co-working and managed offices. However, as the industry matures, it is anticipated that the returns profile will gradually stabilise towards IRR levels of 20% to 25%, which still surpasses the returns provided by some other real asset classes.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..