IndiQube targets over four million sq ft of flex-office by 2021 – ET RealEstate

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BENGALURU: Flexible office operator IndiQube plans to expand its managed office business across Bangalore, Pune and Hyderabad as the demand for serviced offices is expected to grow in 2021.

The firm that operates around 2.5 mn sft serviced offices across major cities plans to add another 2 mn sq ft space by the end of 2021— the majority of it coming up in Bangalore.

“Covid-19 has accelerated the trend of managed spaces in the country. Going ahead, the hybrid model of workspace will be the future,” said Rishi Das, Cofounder, IndiQube.

It counts Unacademny, Makemytrip, Philips and EY among its clients. The company said it will focus more on managed spaces to cater to the growing demand from large corporates.

“We had slowed down expansion in other cities due to Covid-19 as the focus was to stabilise the existing centres. By the end of 2021, we plan to have 70,000 seats under management,” he added.

As large corporations return to the workplace, they are likely to further leverage flexible space to reduce capital expenditure and create cost savings, while allowing for split teams and de-densification requirements.

“We are also seeing good opportunities to take over older commercial buildings and release them. We will add 1 mn sft through refurbishing older buildings,” said Das.

Irrespective of several short-term disruptions and challenges, increased demand from large enterprises, will support the growth of the flex space market to more than 50 mn sq. ft. by 2023.

It is anticipated that flexible space will grow by an average of around 15-20% per annum over the next three-to-four years, although this trajectory will not be linear.

“While the flex-space market more than tripled in the last 3 years, the momentum going ahead will be relatively slower. Players are likely to tread cautiously, and the overall market is expected to expand 1.5 times from the current size,” Samantak Das, Chief Economist and Head of Research & REIS, JLL India.

At present, Bengaluru and Delhi NCR together account for more than 50% of the flex space stock in India, with Bengaluru housing around 10.6 mn sq. ft. of such spaces.



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315Work Avenue leases around 1,00,000 sq ft workspace in Bengaluru – ET RealEstate

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BENGALURU: Flexible office provider, 315Work Avenue has leased one lakh sq ft of office space in Bangalore to cater to the growing demand from large enterprises.

The new office will be spread across two properties located at Koramangala and old Madras road in Bangalore and will have around 2000 seats.

“In the current situation, taking a conventional office space is becoming challenging for companies. Most of the companies are looking for flexible office spaces, and thus safeguarding them from Capex cost, longer lock-in terms, huge deposits etc.

Corporates and large enterprises too will avoid high capital expenditures and look towards flexible working spaces to expand business. Moreover, the pandemic has highlighted the importance of de-densification of office space and adoption of hub and spoke model,” said Manas Mehrotra, Founder, 315Work Avenue.

315Work Avenue plans to beef up its total portfolio to 25000 seats this year with a focus on south and west India, while further strengthening its presence in Bangalore. The company currently manages 15 workspaces with around 12,000 seats across multiple prime locations in Bangalore.

“We have also signed around 1000 seats last month with multiple companies and we foresee a huge jump in coworking space demand in coming months, as people want to have flexibility in the way they work, including locations, office tenure, options to expand and downsize anytime etc,” said Mehrotra.

According to a Savills India report, leasing activity by coworking operators is expected to increase by 42 per cent in 2021 over 2020, and the share of coworking space take-up in overall office leasing activity is poised to rebound to a 15 per cent share in 2021, similar to the 2019 level. Bengaluru and Hyderabad continue to see maximum traction of the total leasing activity in the coworking segment.



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Hyderabad: RWAs in Malkajgiri approach UFERWAS over fixing watermeters at own cost – ET RealEstate

HYDERABAD: Water users in GHMC Malkajgiri circle are in a dilemma over fixing water meters at their own cost. The municipal administration and urban development (MAUD) department has made fixing of water meters by consumers mandatory to avail the benefit of free water up to 20,000 litres per month.

The Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) sent SMS alerts to all the consumers of Malkajgiri circle on Tuesday on fixing the water meters at their own cost. Responding to the alerts, some residential welfare associations (RWAs) approached United Federation of RWAs (UFERWAS), an apex body of RWAs, and appealed to HMWS&SB MD M Dana Kishore to resolve the issue.

UFERWAS general secretary BT Srinivasan said the water board had taken up Malkajgiri water supply scheme with World Bank assistance. The project cost was pegged at Rs 338 crore.

As per the tender norms, HMWS&SB was to fix the water meters to all 35,000 consumers in Malkajgiri circle for free under the provision of ‘meter and a chamber.’ “The water board built water meters chambers on all the premises of domestic consumers at free of cost, but forgot to install the water meters,” said Srinivasan. He also said water supply had been commissioned but fixing of water meters was kept pending.

“Now, the water board is insisting consumers to get the meters fixed at their own cost to avail the free water scheme,” he said, adding that thousands of connections in Malkajgiri circle do not have meters and consumers are paying a minimum bill of Rs 258 per month.

For households that consume about 20 kl per month, the monthly bill comes to around Rs 320 which would be waived. Water bills will, however, be issued as per the tariff to those consuming above 20,000 litres a month. HMWS&SB assistant engineer, Defence Colony, Srivani said they are waiting for guidelines from the HMWS&SB head office on resolving the row over water meters.



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Housing launches across top seven markets witness sequential spike in Q4, up 112%: Report – ET RealEstate

MUMBAI: The improvement in housing sales momentum in the last few months has managed to renew business confidence among real estate developers as indicated by the rising project launches activity across the country.

The ongoing fourth quarter has witnessed launch of 26,785 new residential units, more than twice the launches seen in the previous quarter that ended in September. Hyderabad property market dominated the new launches accounting for nearly 40% of the overall launches during the quarter and Bengaluru followed with over 16%, showed a JLL India report.

However, the new launches are still restricted when compared to the pre-COVID levels as more developers across markets are focussing on completion of their under-construction projects and clearing existing inventory.

While the overall sequential jump in launches is 112%, property markets of Bengaluru and Delhi-NCR have seen a substantial increase in launches at 304% and 221% rise respectively during the quarter.

The business confidence is rising given the rising sales activity. Top seven key Indian cities saw sales recovery gains of more than 50% in 2020 with Hyderabad, Mumbai and Delhi NCR gaining maximum foothold as compared to 2019. In Hyderabad, the Western Suburbs accounted for more than 70% of the overall sales, while in Mumbai, sales were driven by Thane and Navi Mumbai, with a combined contribution of over 50%. In Delhi-NCR, Noida and Ghaziabad accounted for nearly 80% of the sales.

“GDP in the July-September quarter of 2020 showed higher than expected recovery. During the same quarter, the housing market showed some initial signs of recovery as well, with sales increasing by 34% on a sequential basis. In the backdrop of issues like job security and fall in income levels, this uptick in sales was a significant achievement. The fourth quarter has witnessed a 51% improvement in residential sales, and not just that, the improvement has been evenly spread among all seven cities,” said Ramesh Nair, CEO and Country Head, India, JLL.

He believes the housing market is set to chart a new chapter of growth in 2021, fuelled by affordability, reinforced desire to own a house and renewed interest from certain buyer segments such as non-resident Indians (NRIs).

On an annual basis, overall launches across the top seven cities dipped by 31% to about 95,000 units in 2020. Development focus on mid and affordable segments continued during the quarter with more than 80% of the new launches in the sub Rs 1 crore category.

Moving ahead, the focus on this price segment is expected to continue with developers trying to reap benefits of strong pent-up demand in this segment. Most of the new launches in the southern markets of Bengaluru, Chennai and Hyderabad were in the sub Rs 1 crore category.

According to Samantak Das, Chief Economist and Head of Research & REIS, India, JLL, as the sector shows signs of recovery, prominent developers are expected to be at an advantage and capture a greater share of the market.

Given that the affordable and mid-segments below Rs 1 crore continue to witness maximum sales traction, select developers are also reviewing their projects to make them more aligned to buyers, both in terms of product and price, he said while adding that buyers are unwilling to take any risks and are showing higher preference for completed projects, or projects where significant construction is underway.



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