Office leasing by co-working operators in Jan-Jun up 48% to 65 lakh sq ft in top 7 cities: Colliers
Live Events
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Co-working centre operators have rented 65 lakh square feet of office space during the January-June period this year across seven major cities, up 48 per cent on an annual basis, on rising demand for managed and flexible workspaces from corporates, according to Colliers India Co-working operators leased 44 lakh square feet in the corresponding period of 2024 calendar year across seven cities -- Delhi-NCR, Mumbai, Kolkata, Chennai, Hyderabad, Pune and Bengaluru.The co-working operators take office spaces on rent from real estate developers and property owners and then sub-lease it to corporates of all sizes.Although many corporates have started opting managed office space provided by co-working operators to save cost and hassles, a large number of companies still take conventional workspaces directly from builders and property owners.Colliers India data showed that the total gross leasing or absorption of office space rose 13 per cent to 337 lakh (33.7 million) square feet during January-June 2025 across these seven cities, from 299 lakh (29.9 million) in the year-ago period."Flexible spaces are increasingly establishing themselves as a key demand driver in India's office market. Given the current momentum, flex spaces are likely to define contours of commercial real estate in India throughout 2025 and beyond," said Vimal Nadar, National Director and Head of Research, Colliers India.Commenting on the data, Darshan Govindaraju, Executive Director at Bengaluru-based Vaishnavi Group, said the surge in office space leasing can be attributed to the robust addition of Grade A office spaces across micro markets in the top seven cities which are attracting occupiers from across the globe."This, coupled with the sustained confidence of technology enterprises in the India growth story and the robust addition of their GCCs ( Global Capability Centers ), is helping shore up leasing in these markets," he added.Manas Mehrotra, Founder of 315Work Avenue, said co-working spaces have emerged as the defining feature of India's rapidly evolving commercial real estate."There continues to be huge traction for flex space from corporates of all sizes as flexible workspace has become a key component in the overall real estate portfolio of corporates to enhance employee productivity , foster collaboration, and optimise operational costs by scaling up or down as per business requirements," he added.Shesh Rao Paplikar, Founder & CEO, BHIVE Workspaces, said the India growth story continues to capture the mindspace of global organisations with their continued investment in the country's technology, GCC, BFSI, insurance and other sectors.Flexible managed workspace is acting as a catalyst in driving consistent growth in office space leasing, he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
15 minutes ago
- Time of India
GST reforms must to align with global trade: PwC
GST COLLECTIONS DOUBLE in 5 YRS (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The goods and services tax (GST) regime is at a critical juncture, requiring reforms to align with global trade dynamics and attract investments, said a PwC report The report, titled 'Eight Years of GST: A time to reflect, a time to reform', highlighted key milestones of the tax system and suggested changes to make it more robust, transparent and business-enabling. "The evolving landscape of international trade, coupled with growing need to attract investments in manufacturing and global capability centre (GCC) sectors, calls for a GST framework that is agile, investor-friendly, and globally competitive," said the recommended rate rationalisation, broadening input tax credit eligibility, covering aviation turbine fuel and natural gas under GST , and shifting to a three-tier rate structure from a four-tier structure as key reforms to reduce disputes and improve tax certainty Gross GST collections doubled in five years to reach an all-time high of ₹22.08 lakh crore in the 2024-25 fiscal year, from ₹11.37 lakh crore in FY21, government data showed on Monday.
Economic Times
19 minutes ago
- Economic Times
Cognizant's former CEO's investment firm Recognize raises $1.7 billion in second fund
Recognize Partners, a technology services-focused private equity firm co-founded by seasoned industry leaders including Francisco D'Souza former chief of IT firm Cognizant, has raised over $1.7 billion (around 14,580 crore) in its second fund to invest in next-generation digital services. With Recognize II, the firm will continue to look at investing and picking up majority stake in companies with enterprise values between approximately $50 million and $500 million, when companies start needing growth capital. The cheque sizes of each investment would be similar to the previous fund with average ticket size of around $100 million or a little bigger, D'Souza told ET in an interaction. The capital was raised from existing and new investors or the limited partners (LPs) which include endowments, foundations, pension funds, insurers, family offices, outsourced chief investment officers (CIOs) and fund-of-funds. In this fund, investors were beyond the US, across Europe, Asia, and Latin America, D'Souza added. In 2022, Recognize had raised $1.3 billion for its inaugural fund and has made 13 investments so far with one more likely going forward to fully deploy the fund. The New York-based investment firm was co-founded by managing partners D'Souza, Charles Phillips – former president of Oracle, and David Wasserman – former partner at investment firm Clayton, Dubilier & Rice and banker with Goldman Sachs. According to D'Souza, 'The core thesis remains intact which is we want to build the next generation of digital services…AI is disrupting the IT services or the digital services landscape quite significantly. We think that the future of IT services is companies that embed proprietary IP (intellectual property), artificial intelligence, automation, platforms, and we think that those companies will lead this change in IT services.'He believes there is a shift happening in the technology services space. 'But I think it is accelerating from let's call it labor-intensive models to IP and intelligence-enabled models and we think that's a fairly fundamental reset in the industry. And we're investing in companies that are not just adapting to that trend but are really leading that trend and architecting the future.'D'Souza estimates the total IT and digital services market opportunity continuing to be about a $1 trillion market. 'If you include the tech-enabled business processes, historically what you would have called the BPO (business process outsourcing), that's probably another trillion dollars give or take. So, $2 trillion market. My estimate would be that one third of these are publicly traded and the rest are private.'Over the last six months, Recognize made four new platform investments - SDG Corporation in cybersecurity services, Sprout in digital infrastructure services, TRANZACT in the insurance services space – all from the first fund while HealthEdge – a software-as-a-service (SaaS) player in healthcare – from the newly launched fund the first fund, Recognize has completed two full exits with AI-based talent platform Torc being sold to Randstad while AST being sold to IBM earlier this year. It also made a partial exit of 2X through a strategic investment by another investment firm Insight Partners.
Economic Times
19 minutes ago
- Economic Times
Industrial output growth hits nine-month low in May
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India's industrial output growth slowed to a nine-month low of 1.2% in May, dragged down by a contraction in mining and electricity sectors even as manufacturing remained tepid, official data released on Monday Index of Industrial Production (IIP) had expanded 2.6% in April and 6.2% in May the three major sectors, only manufacturing grew in May-by 2.6%. Mining and electricity output contracted by 0.1% and 5.8%, attributed the slowdown mainly to early monsoon and slow pickup in urban consumption."The early onset of the monsoon doused activity in mining and the demand for electricity, amidst an anaemic growth of manufacturing," said Aditi Nayar, chief economist at ICRA Tepid industrial volume growth in April and May doesn't augur well for industrial gross value added (GVA) growth in the first quarter of FY26, she noted. Industrial GVA growth declined to 6.1% in FY25 from 11.4% in FY24. Official figures for the June quarter will be released in the manufacturing sector, 13 out of the 23 industry groups recorded positive only 11 of these sub-sectors had a higher year-on-year growth than the overall growth in May, illustrating the fractured and paltry industrial growth, noted Paras Jasrai, associate director at India Ratings and Research (Ind-Ra).In terms of use-based classification, three of the six categories recorded a contraction in May - primary goods (1.9%), consumer durables (0.7%), and consumer non-durables (2.4%).Fall in consumer goods production points to "weak goods consumption by households," Jasrai Sengupta, chief economist at IDFC First Bank , said, "The IIP number is confirming that the urban side of the consumption basket is not doing so well."On the upside, capital goods continued to be the top performer, with growth at a 19-month high of 14.1%, followed by infrastructure/construction goods (6.3%), and intermediate goods (3.5%).
