Flexible workspace providers like Table Space, Bhive, Indiqube, and EFC are adapting strategies to acquire properties in India instead of leasing, responding to increased demand post-pandemic. Forecasts project Indian flexible office market growth from 55 to 100-140 million square feet by 2030. Table Space recently raised USD 325 million to increase its operational capacity and acquire assets. Similarly, EFC aims to increase operational seats from 32,000 to 92,000 by 2026. However, experts caution that asset acquisition may only be viable for select players due to the high investment requirements. Additionally, specific markets limit real estate acquisition in India's flexible workspace sector.
Due to the pandemic, there's a growing need for flexible office setups. Companies like Table Space, Bhive, Indiqube, and EFC are changing their strategies. Instead of leasing, they're buying properties across India. According to a report by MyHQ, the Indian market for adaptable offices is expected to grow significantly. It could reach between 100 and 140 million square feet by 2030, up from the current 55 million square feet.
Amit Banerji, CEO of Table Space Technologies, says they've already bought several properties and plan to expand to cover 4 million square feet. Buying these properties gives them more control and higher rental income. With over USD 325 million investment from Hill House Capital, Table Space is set to expand its presence across India. Their focus is on buying properties and turning them into flexible workspaces.
Foreign investors are increasingly interested in Indian coworking companies, leading to a shift towards a model where these companies own more assets. Since the start of the pandemic, flexible workspace operators have raised INR 4,600 crore, much more than in the previous five years. Umesh Sahay, CEO of EFC (I), says they currently own about 100,000 square feet and plan to increase this with an alternative investment fund. This fund will help them buy more assets and strengthen their position as a flexible workspace provider.
EFC (I) aims to increase their operational seat capacities from 32,000 to 92,000 by March 2026. While companies like Table Space, Bhive, Red Brick, and WeWork have grown their real estate portfolios to meet client demands, experts warn that buying assets may only work for certain players and locations due to the high costs involved. Pratyush Pandey, CEO of Upflex India, says some Indian markets limit real estate acquisition in this sector. Most major operators avoid this approach because it requires a lot of money.
Companies like Google, Samsung, Rolls Royce Energy, Kotak Mahindra Bank, and Larsen & Toubro are opting for flexible workspaces, which is increasing the demand for commercial real estate in major cities. Leading coworking brands are using technology to create better workspaces. They're using systems to manage assets and inventory, allowing people to book meeting rooms on demand, automating parking, managing visitors smartly, and controlling access. This improves how the workspace functions and makes it better for users.
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