Flexible workspace provider Incuspaze has been rapidly expanding its portfolio across major Indian cities to capitalize on the growing demand for flexible office spaces. In one of the largest leasing deals of 2024, Incuspaze leased over 350,000 square feet of office space in Gurgaon. The company also leased significant spaces in Pune and Jaipur as part of its target to add 1.5 million square feet to its portfolio this year. Incuspaze aims to grow its total portfolio to 7 million square feet by 2026, driven primarily by demand from large and mid-sized enterprises seeking cost-effective, flexible workspace solutions.
Flexible workspace provider Incuspaze has been aggressively expanding its portfolio across India. In one of the largest office space transactions of 2024, it leased 350,000 square feet in Gurgaon's Udyog Vihar.
The company also leased 150,000 square feet in Pune and 60,000 square feet in Jaipur as it looks to add 1.5 million square feet to its portfolio this year. This expansion is driven by the rising demand for flexible workspaces in the country.
Incuspaze currently has an occupancy rate of 95% and mostly caters to large enterprises. As per Incuspaze Managing Partner Sanjay Chatrath, Incuspaze plans to grow its portfolio to 7 million square feet by 2026 on the back of increased demand from mid-sized and large corporations.
Incuspaze currently has a presence in 44 locations across 18 cities with a total portfolio of 2.5 million square feet.
In the last quarter alone, Incuspaze acquired 600,000 square feet in key markets like NCR, Pune, Hyderabad and Jaipur. Incuspaze has a large presence in North India and is looking to expand to Bangalore, Hyderabad and Chennai as well.
Demand for flexible office spaces has increased in India in recent years partly because of the ability to scale up or down as per the business requirements. Besides, traditional office spaces in prime locations often come with high rents and long-term lease agreements. Flexible office spaces offer a more cost-effective alternative, as businesses can rent only the space they need for a specific period, avoiding hefty upfront costs and long-term commitments.
Incuspaze also plans to acquire more stand-alone buildings to offer value-added facilities such as extensive parking areas, creche, recreation area and well-equipped meeting rooms to its global clientele.
As per CBRE data, flexible space operators emerged as the second largest leasing segment for the first time in the January-March quarter. Large operators continued taking up spaces to meet growing demand from global corporations.
Of the total 14.4 million sq ft of space leased in the fourth quarter of 2023-24, 26% was by the tech sector and 22% by flexible space operators, as per the data. The 3 million sq ft taken by flexible space operators during the quarter was the highest so far in a quarter.
India is the fastest-growing flexible office market in the world. The sector is likely to gain further traction, driven by increasing demand across segments, including large enterprises, the growing startup ecosystem, and global capability centres establishing their research and development operations in India.
Incuspaze's aggressive expansion underscores the rising popularity of the flexible workspace model in India. As a major player in the flexible office space domain, Incuspaze is well-positioned to capitalize on the sector's strong growth trajectory in India through strategic acquisitions and portfolio expansion. This will allow the company to continue meeting the diverse real estate needs of its large global clientele.
Advertisement
Facebook
Whatsapp
