Flexi space companies now prefer to buy properties
Flexible workspace providers like Table Space, Bhive, Indiqube, and EFC are shifting strategies to acquire properties across India instead of leasing them to meet growing demand for flexibility in the office since the pandemic.
The Indian market size for flexible offices is expected to touch 100-140 million sq ft by 2030, up from 55 million sq ft currently, according to a recent report by MyHQ, a flexible workspace provider.
“We have already acquired a few assets and plan to have 4 million sq ft in the portfolio. Acquiring the assets gives us better control over the property, and it also results in a better rental yield,” said Amit Banerji, CEO of managed workspace operator Table Space Technologies.
Table Space recently raised over $325 million from global private equity fund Hill House Capital to expand operations across key office property markets in the country. The company plans to buy assets and subsequently turn them into managed spaces.
Growing interest of foreign funds in Indian coworking firms has also played a key role in brands looking to go for an asset-heavy model.
Flexible workspace operators have raised Rs 4,600 crore since the pandemic, compared to Rs 1,400 crore in five years prior to Covid-19.
“We own about 100,000 sq ft and plan to add more to it through an alternative investment fund. That fund will acquire assets for us and we will operate it as a flexible workspace provider. Owning the assets helps in increasing the rental yield of the property,” said Umesh Sahay, founder and CEO, EFC
