Awfis to double capacity in Hyderabad
Awfis, India’s largest co-working space provider, which operates seven centres in Hyderabad with 4,300 seats is aiming to double the capacity to 8,000 seats within next 9 months to one year.
Amit Ramani, CEO & founder, Awfis, told Telangana Today, “We are seeing a mixed portfolio of clients that include IT and ITeS, large and medium enterprises, startups and freelancers in Hyderabad. Other metro cities also present a similar mix.”
In Hyderabad, the company has centres in Hitec City, Gachibowli and Taj Deccan and is planning to expand its presence in existing locations as well as foray into the Financial District, Banjara Hills and Secunderabad in future. It will also expand to other major towns in Telangana within next nine months.
There is a significant infrastructure that Telangana is seeing which will attract many companies to the State and co-working space demand will also grow parallelly. India is expecting a healthy absorption rate at 15 million sq ft in 2018 and is expecting 32 million sq ft next year. And Hyderabad is currently among the top seven cities that is driving this growth.
He added, “We plans to establish over 100 centres with more than 50,000 seats in the next 10-12 months with 70 per cent of the expansion happening in tier I cities. We will grow deep in existingmarkets of Mumbai, NCR, Bengaluru, Chennai, Hyderabad, Kolkata and Pune. By 2020, we are looking at expanding to more than 1 lakh seats with larger portion coming from top seven cities with 50-75 centres in Mumbai, Delhi NCR, Bengaluru. Currently, each of these cities have around 10-12 centres each.”
Awfis plans to enter tier II cities such as Jaipur, Chandigarh, Ahmedabad, Bhubaneshwar, Kochi and Indore. It has a total footprint of 1.5 mnsq ft across all its existing markets.
Awfis expanded from 5,800 desks across 20 centres in July 2017 to 25,000 seats across 55 centres now indicating massive opportunity this space presents and the growth that Awfis has undertaken. It is aggregating commercial spaces in hotels and malls and converting them into shared workspaces. The company serves over 1,300 companies, of which revenue from SMES account for 40 per cent, corporates 40 per cent and 20 per cent from startups and freelancers.
He points out, “Freelancer segment though small at present is picking up fast. They are looking for flexible workspace, convenient location and gigabyte connection.
As per reports, the industry will reach a valuation of $2.2bn by 2022 which sets the tone for a changing shift in working trends of the entire commercial real estate sector in India.