At 27% Mumbai witnesses the highest coworking rental growth since FY20 - Hindustan Times
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At 27% Mumbai witnesses the highest coworking rental growth since FY20

Mar 14, 2024 02:05 PM IST

Gurugram witnessed 19% growth; Delhi, Bengaluru, and Noida saw growth of 18%, 15% and 14% respectively in average monthly per seat rentals

Mumbai has seen the highest coworking average monthly rental growth of 27% in the last four years followed by Gurugram at 19%, a new report by MyHQ by Anarock has said.

The six cities considered in the report include Mumbai, Delhi, Gurugram, Noida and Bengaluru.

Mumbai has seen the highest coworking average monthly rentals growth of 27% in the last four years followed by Gurugram at 19%, a new report by MyHQ by Anarock has said.
Mumbai has seen the highest coworking average monthly rentals growth of 27% in the last four years followed by Gurugram at 19%, a new report by MyHQ by Anarock has said.

The average monthly rentals per flexi space seat in Mumbai stood at 15,900 as of FY 2024 while back in FY2020 it was 12,500 per seat.

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Gurugram witnessed a 19% growth in the same period – from 8,500 per month per seat in FY2020 to approximately 10,100 per month per seat in FY2024. Delhi’s flex workspace's rental growth is 18% - from 10,000 per month per seat in FY2020 to approximately 11,800 per month per seat in FY2024, it observed.

In Bengaluru, the average monthly rent for flexi spaces was 7,800 per month per seat in FY2020 and increased to 9,000 per month per seat in FY2024, thus recording a 15% jump. Noida saw growth of 14% in average monthly rentals of flexi spaces in last four years – from 6,500 per month per seat in FY2020 to 7,400 per month per seat in FY2024, the report showed.

Also Read: Tier-II cities emerge as new ground for flexible office operators; Ahmedabad records highest flex stock

“The Asia-Pacific region has emerged as an important market for coworking spaces in the last few years, and demand is growing rapidly. Hong Kong, China, India, and Japan are among the large centers that are witnessing massive growth. India, being a hotbed for startups across various sectors and industries, is witnessing steady demand for flexible, economical workspaces,” said Utkarsh Kawatra, Senior Director - myHQ by ANAROCK.

Coworking contributed 18% of total office supply in the top seven cities’ office leasing market

Coworking contributed 18% of total office supply in the top seven cities’ office leasing market in the current financial year. The current market size of flexible office real estate across the country is approximately 55 mn sq. ft. and is expected to touch between 100 mn sq ft to 140 mn sq ft by 2030, a report by MyHQ by Anarock has said.

Also Read: Managed office space provider Smartworks aims to hit 25 m sq ft across 14 cities in 4-5 year

Funding in the coworking sector has also been promising, with an influx of funding in the post-Covid-19 era in comparison to the pre-Covid-19 period.

The report also noted that an average coworking center of 20,000 sq ft can fetch an internal rate of return of 40-70%. As many as 70% companies have adopted a hybrid work model.

Also Read: Co-working firms want Budget 2024 to provide for ITC and allow green credits

Two out of three industry professionals believe the demand for coworking spaces will outstrip that of traditional office spaces by 2030. Hotels and F&B outlets have also started opening coworking wings to maximize revenue from day-time unutilized inventory.

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