Awfis Overview

Indian economy continues to grow as one of the fastest growing economies and is expected to overtake Japan and Germany. The service sector led by technology and financial contribute to 54 percent of Indias gross value added. 

India office market overview

  • Tier one cities have around 800 million square foot of commercial office space. 

  • Office space to grow at a rate of 6.5 percent CAGR till 2026

  • Since 2019 vacancy rates have increased from 16 to 25 percent

  • Bangalore has the least vacancies with Calcutta having the most

  • Bangalore. Hyderabad, pune and Chennai have witnessed better rental prices. 

  • Some growth factors for the Indian office market are favourable demographics and foreign investments

  • Grade A offices are taking over grade B offices

  • Unorganised sector is gaining momentum over the organised sector in the office market

  • Drivers in the commercial offices include competitive cost advantages, low cost high quality and high technology sector office demands

Flexible offices

  • Gaining attraction because of needed flexibility after covid 19 

  • Growth drivers include  reducing capex, hybrid work arrangements, and new market entry

  • Technology is the biggest driver of flexible offices

  • Growth of Asia Pacific flexible workspace is at 34 percent CAGR

  • Flexible work spaces are growing because cost optimisation and more

  • Bangalore has the largest market for flexible offices

  • Pros of flexible workspaces compared to traditional spaces are cost saving, flexibility of duration, and collaboration opportunities.

  • Space owners continue to partner with flexible workspaces as it is growing in demand

  • Tier 2 cities gaining in space available

Outlook

  • Vacancy levels to increase because of new supply

  • Occupier space off take is growing well with a growth rate of 30 to 40 percent

Overview of business

They are the largest flexible office spaces provider and are also ranked number 1 out of all the benchmarked players. Other than office spaces they also provide services like housekeeping and waste management services. They have 136 centres around india in 48 micro markets and in 16 cities. In the past few years there have been an evolution in customer needs with a rise of the preference of flexible workspaces. Some of their strengths are that they are a leadership in an upcoming market, diverse space sourcing and demand strategies. They also provide designing solutions for offices. Flexible office spaces are 60 percent dominated by the top 10 operators