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Demand for flex real estate spaces remains firm as buyers continue to mix their overall real estate purchases in a bid to control costs while providing conveniences to work for their employees. Flex space, also known as flexible space, is typically a segment of real estate that provides customers with flexible office space based on their needs. Startups are increasingly preferring such real estate setups. Leasing by flex space sellers in January-March 2023 inched closer to that of technology companies for the first time ever, according to a report by Nasdaq-listed multinational investment management company <keyword id="813133" type="General" weightage="100" keywordseo="colliers" source="Orion">Colliers</keyword>. Flex occupiers leased 2.1 million square feet of space during the first quarter of 2023, accounting for 20 per cent, a few paces behind the technology sector's share at 22 per cent and together both segments accounted for nearly 42 per cent of the total leasing across top metros, the Colliers report revealed. "Large technology occupiers have also been leasing spaces in flex spaces due to their added benefits such as flexible lease terms, lower capex and modern workplace designs. This coupled with ongoing recessionary conditions and layoffs in the technology sector has led to a relative pushback in conventional leasing by these occupiers," it said. Bengaluru and Delhi-NCR were the most preferred locations for top flex operators for their expansion. Bengaluru accounted for nearly half of the total flex leasing during the quarter, followed by Delhi-NCR at 30 per cent share, the report said. "Share of the technology sector has declined steadily from 34 per cent in Q1 2022 to 22 per cent in Q1 2023, as corporates continue to focus on building in operational efficiencies through a hybrid model. While Hybrid working has impacted demand for conventional office spaces, it has also fueled demand for flex spaces across top markets. As long-term growth drivers for tech sector remain strong in India, the technology sector will continue to drive office leasing activity through a mix of conventional and flex spaces," says <keyword id="14448391" type="General" weightage="80" keywordseo="peush-jain" source="Orion">Peush Jain</keyword>, Managing Director, Office services, India, Colliers. Overall, the year 2023 has started on a cautious note registering a 19 per cent yearly decline in leasing activity across the top six Indian cities at 10.1 million square feet during the first quarter, according to the report. "On a sequential basis leasing continued to drop, indicating delayed decision-making by occupiers amidst continued economic uncertainties," it said. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/zomato-gold-swiggy-dineout-competitor-eazydiner-raises-40-crore/articleshow/99091065.cms">EazyDiner raises ₹40 crore from DMI Alternative Investment Fund</a> <a href="https://www.businessinsider.in/tech/apps/news/how-to-check-tds-dividend-income-and-income-tax-refund-using-the-ais-for-taxpayers-app/articleshow/99025288.cms">How to check TDS, dividend income, and income tax refund using the AIS for Taxpayers app</a> <a href="https://www.businessinsider.in/business/startups/news/ashneer-grovers-new-startup-crickpe-is-a-fantasy-sports-app-that-will-also-reward-cricketers/articleshow/98964195.cms">Ashneer Grover's new startup CrickPe is a fantasy sports app that will also reward cricketers</a>

Demand for flex realty upbeat even as overall sales dip in Q12023: Colliers

New Delhi, Co-working major <keyword id="4052133" type="General" weightage="20" keywordseo="Wework-India" source="Orion">WeWork India</keyword>'s revenue grew by 40 per cent to Rs 400 crore during the first quarter of this fiscal year on rising demand for flexible workspace across major cities from corporates, its CEO Karan Virwani said. The company, which is owned by real estate firm Embassy Group and <keyword id="2918346" type="General" weightage="20" keywordseo="Wework" source="Orion">WeWork</keyword> Global, has started its 50th centre at Saket in South Delhi, marking its entry into the national capital market. The new centre, comprising 54,000 square feet area and around 700 desks, is located in a commercial building developed by realty firm Eldeco. In an interview with PTI, Virwani said the company has completed six years since it opened the first centre in India and now it has 50 centres and around 90,000 desks across seven cities. "It has been a great journey of growing both the co-working/flexible workspace segment and WeWork India as a brand. In the last three years, since COVID, the adoption of flex space growing significantly," he said. The demand is increasing as more and more employees are coming back to offices, Virwani said, adding that the country's economic growth is also supporting demand. "In 2021-22, we close the financial year with around Rs 800 crore of revenue and we were negative Rs 50 crore EBIDTA (Earning Before Interest, Depreciation, Tax and Amortisation). During the last fiscal, we achieved a turnover of around Rs 1,400 crore and Rs 250 crore of EBIDTA," Virwani said. The company was profitable at the post-tax level also during the last fiscal year, he said. Virwani hoped that the company would maintain growth during the current fiscal. In the first quarter of 2023-24, Virwani said the company has posted a revenue of Rs 400 crore, up 40 per cent from the year-ago period. The EBIDTA was about Rs 70 crore. "We are targeting 50 per cent growth in this full fiscal year," he added. On the operational front, Virwani said the average occupancy level at its centres is at around 80 per cent and the company would target to increase it further. He said that a lot of new demand is coming from the existing clients. "The past few years have clearly highlighted that the future of work is flexible, and India Inc is increasingly adopting flex working as a way of life". Asked about US-based WeWork Global's recent statement that "substantial doubt" exists about the company's ability to continue as a going concern, Virwani said WeWork India business will have no impact from the development globally. "We have always been a separate entity where the majority anyway is owned by Embassy Group. We have run and build the India business in an extremely healthy way. So, India business is fully isolated from what is happening globally," Virwani said. In WeWork India, Embassy Group holds a 73 per cent stake, while WeWork Global has a 27 per cent shareholding. Asked whether Embassy would consider WeWork Global stake in India business, he said, "I will always be a buyer of this company's equity if anyone is willing to sell it whether it's at a discount or even a slight premium. We see a long-term value to be much much higher than what it is today. So I am always going to be a buyer." Virwani described WeWork Global as a great partner who helped India business during the tough COVID period by making investments. WeWork Global, which is a leading provider of flexible workspace, had in June 2021 invested USD 100 million in WeWork India. WeWork India has 50 centres, covering 6.5 million square feet area across 7 cities -- New Delhi, Gurugram, Noida, Mumbai, Bengaluru, Pune and Hyderabad.

WeWork India revenue up 40% in Apr-Jun to Rs 400 cr on rising demand for co-working space: CEO

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Demand for flex realty upbeat even as overall sales dip in Q12023: Colliers

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WeWork India revenue up 40% in Apr-Jun to Rs 400 cr on rising demand for co-working space: CEO

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