BUSINESSES FAVOUR MODERN OFFICES OVER TRADITIONAL SETUPS

BY Realty Plus

Amal Mishra, Co-founder, Urban Vault, a Bengaluru based managed co-working space provider was of the view that Coworking segment, which includes managed office space, is having a dream run in the last two years, negating concerns related to its survival in view of wide-scale adoption of work from home (WFH),  Work from anywhere and hybrid work culture.”Corporates of all sizes have been taking office space in coworking centres and they are looking to increase the share of flex space in their overall real estate portfolio. Flexibility to scale up and scale down business, Saving of capital expenditure and avoiding hassles to manage real estate are major considerations for corporates while choosing coworking space.”

Mukul Sharma - Head Corporate leasing, Advance India Projects Ltd (AIPL) shared, “There is a noticeable increase in the demand for high-quality office spaces, commonly referred to as Grade A office spaces, as both multinational corporations (MNCs) and domestic companies are increasingly favoring modern office environments over traditional setups. This surge in demand extends beyond just the IT sector and is now observed across various industries such as manufacturing, FMCG and others. Cities like Gurugram, Bangalore, Chennai, and others are witnessing a strong demand for Grade A office spaces that exceeds the current supply. This trend highlights the growing recognition and preference for contemporary workplaces that offer advanced amenities, state-of-the-art infrastructure, and an environment conducive to productivity and collaboration. At AIPL, we have observed that clients are willing to pay a premium for quality office spaces compared to prevailing rentals in the surrounding areas.”

Gagan Randev, Executive Director, India Sotheby's International Realty said, “Although the office market has been affected by economic challenges in global economies, there is good support from domestic companies. Many conglomerates are now embracing flex-office spaces due to the hybrid work model, minimal capital expenditure required, and the flexibility these spaces offer. Consequently, there is an increasing demand for such office spaces. This trend has resulted in low vacancy rates for flex-office space operators.”

Tags : business modern offices traditional setup industry experts views demand high-quality spaces Amal Mishra Co-founder Urban Vault Bengaluru managed co-working space provider Mukul Sharma - Head Corporate leasing Advance India Projects Ltd (AIPL) Gagan Randev Executive Director India Sotheby's International Realty