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Demand for co-working office spaces on the rise in Hi-tech Hyderabad
Times of India  |  June 18, 2018

Sudipta Sengupta TNN Hyderabad

The city’s vibrant entrepreneurial sector coupled with highly competitive real estate prices has led to a rise in demand for co-working office spaces, particularly along Hyderabad’s upscale IT corridor.

 

Such is the rush that major players in the market confess, they are aggresivly looking at expanding their already large footprint in the city soon &ndash- some hoping to add another 50,000 to 1 lakh square feet (sft) to their kitty.

 

“We are going extremely bullish on the Hyderabad market. Apart from our four existing centres, we are very close to signing another one lakh sft in Raidurg and 30,000 sft in Hi-Tec City,” said Amit Ramani, founder and CEO of Awfis, emphasising how this concept of shared space has proved most advantageous for SMEs (small and medium-sized enterprises) that until now, found it difficult to set base within Grade A office buildings.

 

Predictably, IT and ITeS companies apart, even financial service providers, design firms, creative agencies, media houses etc are seen lapping up this ‘managed’ office space offer. A key reason: affordability. According to rough estimates, the rate-card of most of these firms range between Rs 10,000 and Rs 15,000 (on an average) per seat per month.

 

“Often, clients do not have the capital to invest in real estate. They just want to walk into a ready office. That these spaces offer flexibility and do not demand long-term commitment, works well. Also, it’s a very cost-effective model,” said Veera Babu, managing director (Hyderabad), for the real estate services company Cushman & Wakefield.

 

That most firms offering this service have managed to address the biggest concern of their clients &ndash that of data security &ndash has only enhanced their selling quotient. “We not only customise the space according to the specific requirements of the client but also ensure complete privacy. Providing data and IT security is one of our main priorities,” said Karan Chopra, co-founder and managing director at Tablespace Technologies Pvt Ltd. which deals with enterprises willing to sign up a minimum three-year agreement-.The clause notwithstanding, the its close to 1.5 lakh sft of space spread across two buildings in the city are running packed to capacity. Swept by the same wave of surging demand is Workafella, part of the Chennai-based Rattha Group. And according to its CEO, Vinod Babu, it is the “entrepreneurial spirit” of the city that’s the biggest driving force behind it.

 

“Also, with companies focusing on innovation, being within co-working spaces alongside peer groups, makes way for collaboration. Some big companies in Bengaluru already have small teams operating out of shared offices,” Veera Babu said.