Pune Leads Surge in Co-Office Space Demand Across Major Indian Cities

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Pune, 8th April 2024: In the first quarter of this year, there has been a significant surge in demand for office spaces across eight major metropolitan areas in the country. Notably, co-office spaces, also known as co-working or flex spaces, have seen a remarkable uptick, constituting 23 % of all office space transactions.

Leading the charge in flex space transactions is Pune, where approximately 1.2 lakh square feet of space has been transacted. Following closely behind is Bangalore, where transactions have reached 9 lakh square feet.

Knight Frank India recently published a report on the property sector in the country, focusing on office space transactions in the aforementioned metropolitan cities from January to March. According to the report, a total of 1 crore 62 lakh square feet of office space was transacted during this period, marking a notable 43 % increase compared to the same timeframe in previous years.

The majority of office space transactions are attributed to Indian offices of multinational corporations (MNCs), with global facilities accounting for the largest share at 59 lakh square feet. Co-working spaces follow closely behind, representing 38 lakh square feet of transactions. This marks a significant increase from the first quarter of the previous year, where co-working spaces accounted for only 3.4 lakh square feet of transactions.

A co-working space is a shared workspace where individuals or companies work alongside each other in a communal environment. These spaces are often set up in large facilities and can be utilized by various organizations, independent professionals, freelancers, and startups. Instead of each entity having its own separate office, they share the same workspace and amenities.

Transactions of co-working space, measured in millions of square feet, indicate the amount of space leased or utilized for co-working purposes in different metropolitan areas. For example:

– Pune: 12 million square feet
– Bangalore: 9 million square feet
– Delhi: 8 million square feet
– Mumbai: 3 million square feet
– Ahmedabad: 3 million square feet
– Hyderabad: 2 million square feet
– Chennai: 2 million square feet
– Kolkata: 0 million square feet

The total transactions across these cities sum up to 38 million square feet. This data underscores the growing popularity and demand for co-working spaces, driven by factors such as the increasing number of small companies and startups, as well as the cost-saving benefits of shared facilities.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, notes that the demand for office space is on the rise due to the country’s economic stability and business opportunities. This increased demand extends to co-working spaces, which offer flexibility, cost-effectiveness, and shared amenities, making them an attractive option for various organizations and professionals.