Occupancy Levels Near Full In Hyderabad Coworking Spaces

We have observed heightened demand for premium coworking spaces, particularly in key areas like Hi-tech City, Gachibowli, and the Financial District. This growth is largely due to city’s vibrant business environment, abundant talent pool, and the rising need for workspaces – Sumit Lakhani, Deputy CEO of Awfis Space Solutions Ltd

Hyderabad: Solopreneurs, startups, and established enterprises too, are opting for flexible and customisable managed coworking spaces in Hyderabad. Office space leasing by flex space operators increased by 45 per cent year-on-year to 0.75 million sft in H1 2024 from 0.52 million sft in H1 2023. With continued infrastructure development and strong government reforms, the city is poised for exponential growth, leading to further demand for coworking solutions, say flex space operators.

According to reports, Hyderabad office market recorded 50 lakh sft of leasing in the first half of 2024. Occupancy levels in Hyderabad have surpassed 80 per cent, driven by demand from IT companies. Flex space operators leased the second highest amount of space and accounted for 15 per cent of the total leased office space in the city during H1 2024.

“At Awfis, we have observed heightened demand for premium coworking spaces, particularly in key areas like Hi-tech City, Gachibowli, and the Financial District. This growth is largely due to Hyderabad’s vibrant business environment, abundant talent pool, and the rising need for workspaces that foster innovation and productivity. We are ready to meet this demand with premium coworking spaces,” Deputy CEO of Awfis Space Solutions Ltd, Sumit Lakhani told Bizz Buzz.

Awfis operates 25 centres in Hyderabad offering over 17,000 seats, which includes a partnership with Taj GVK for their centre at Banjara Hills. On plans of expansion, Lakhani said, “Across our portfolio we aim to strengthen our foothold by adding 40,000 new seats by end of FY25, with an adequate portion of this growth in Hyderabad. We consistently maintain a stable occupancy rate of about 70 per cent and 84 per cent for centres older than a year. Additionally, our increased emphasis on the mid-sized segment has further driven our occupancy growth.”

Hyderabad’s rising appeal, fuelled by the growth of Global Capability Centres (GCCs), its skilled talent pool, and high quality of life, has made it a prime destination for businesses and employees alike. Demand for coworking spaces in the city is witnessed especially from tech startups and growing businesses.

“iSprout has a total of 17 lakh sft of managed office space, including a new location at the airport catering to business travellers in Hyderabad. iSprout office space solutions is tailored to the needs of startups, SMEs, and larger enterprises in Chennai, Bengaluru, Pune, Delhi-NCR, and Vijayawada,” Co-founder of city-based iSprout, Sundari Patibandla said.

Flex spaces are now the go-to solution for modern businesses, offering scalability, collaborative environments, and tailored design that enhance productivity and promote employee well-being. On the foreseen growth of managed coworking spaces, Patibandla said, “our year-on-year growth underscores the demand for managed office spaces and iSprout’s position as a top player. Our growth also reflects the ability to adapt to client needs, integrate new themes, and provide more customised and high-quality workspaces.”

Entrepreneurs, SMEs, large corporates, and MNCs are leasing office spaces that are equipped with modern amenities, ready-to-move-in infrastructure, custom-built offices with end-to-end services. Coworking spaces that are strategically located and provide easy connectivity and access to key social infrastructure are in demand.

Sharing insights on the same lines, Lakhani added, “Strategic located centres place us at the heart of Hyderabad’s business hub, making us the ideal choice for companies seeking advanced, tech-enabled workspaces. With aesthetically designed offices, top-notch amenities, and a client-centric approach, our coworking spaces will continue to support the evolving needs of Hyderabad’s business community.”