Office leasing activity remained stable in 2016. Delhi NCR recorded an absorption of approx. 7.6 million sq. ft. In Gurgaon, the office leasing volume gained momentum – the total absorption hitting 3.4 million sq. ft. Golf Course Road, emerged as the preferred location for flexible workspace operators. In Noida, major traction with operators has been on the Yamuna Expressway and Noida Expressway – this is due to the critical mass of technology and electronics firms in this micro market. NCR has emerged as a hotbed for flexible workspace operators as the space is utilised, predominantly, by start-ups, new entrants, and consulting firms who select NCR as a preferred location in India due to low price point, with operators, such as, Regus, Awfis, 91 Springboard, and Instaoffice provide membership options ranging from USD 60 to 180 per seat, per month. IT giants Oracle, Microsoft, Amazon, Google are also contributing to the flexible workspace sector – recently Oracle launched the company’s first “Oracle Start-up Cloud Accelerator” in Bengaluru and is offering mentoring sessions, free access to Oracle Cloud, 24/7 access to space and access to its wide network of customers and partners. Oracle has plans to expand its startup cloud accelerator to Gurgaon and Noida as well in addition to other cities like Chennai, Pune, Trivandrum and Vijayawada. Initiatives such as this will lure more investors, entrepreneurs and talent to the ecosystem.
During 2016 Regus opened three new sites in Delhi NCR, bringing their total leased portfolio in Delhi NCR to nearly 70,000 sq. ft. Corporate edge expanded their footprint at Two Horizon centre and leased approximately 25000 sq. ft. Smartworks has taken up two facilities, one also in Paras Downtown Centre and the other in Logix Cyber Park in Noida. Bengaluru based CoWrks office space operator plans to expand its operations to Gurgaon.
Presently the sector largely encompasses many small players with local presence. Going forward we expect these small players to expand their portfolio across multiple cities thus broadening the sector. With the entry of national level developers and international players like Wework and Regus we expect the sector to become more organised and consolidated, in tune with international best practices.
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