Amid layoffs, flexible workspace players eye expansion in Hyderabad, Real Estate News, ET Real Estate

Hyderabad: Amid growing talk of layoffs and fears of a global recession, flex players are on an expansion drive in Hyderabad. whereas simple task expanding from around 1 million square feet (MSFT) to around 2.5 MSFT in the next 4-5 years, Smartworks and Scooter want to double their footprints to 2 msft (in 18 months) and 1 msft (in a year) respectively.

This also we work The third facility of approximately 1 lakh sq ft is known to be near finalisation, executive center (TEC) is looking to add another 1 lakh sq ft to its existing footprint of 65,000 sq ft in 2023 and local player Dwarka is eyeing another 2 lakh sq ft of office space in 2023-24 to add to its existing 3.2 lakh sq ft .

Then there is The Business Quarter, a 110-seater 14,000 sq ft boutique co-working facility, coming up next year at Hitech City as part of the upcoming The Quorum Hyderabad.

While flex operators say Hyderabad has been one of their fastest growing markets, K Veerababu, managing director, Hyderabad and East India, Cushman & Wakefield, says Hyderabad’s flex market has grown since 2018 with around 85,000 seats has reached around 6 msft, most of which is concentrated in the Hitech City area.

Kunal Walia, CEO & Founder, SimplyWork Office, points out that Hyderabad’s fast-paced infrastructure development, quality of life, cost-effective real estate and proactive government make it an ideal destination, saying: “We have over the last three years Has invested Rs 250 crores in Hyderabad and is looking to invest another Rs 300 crores in the next three years.”
Puneet Chandra, co-founder and director of Scooters, says, “EODB in Hyderabad is phenomenal. It is a very open market, the government is very friendly and the way the IT ecosystem is developing is amazing. will be our biggest market for -3 years.”

Pradeep Reddy, managing director of Dwarka Office Space, points out that the growing economic uncertainty at present is a major factor driving the demand. “While all the talk about layoffs has forced employees to return to work from the office, economic uncertainty is prompting companies to take the flexible route.”

However, Harsh Binani, co-founder of Smartworks, feels that while uncertainty is one of the drivers for rising demand, flex has become a new way of life in the post-Covid world. “In the last 6-7 months, we have done more business than in our entire existence. Workspace needs have evolved and hybrid is the future of work. Companies are questioning why they should have their own offices when such a model exists. Why is there a need for space?” ,

Agreeing, Manish Khedia, Regional MD, South India & Sri Lanka, TEC, says, “2022 has been a year of accelerated demand with large corporates adopting workspace strategies by adopting hybrid work models. Hyderabad has always been on the fast track. “