The economic slowdown has impacted various parts of the world. In this State of the Economy podcast, Abhishek Law talks to Nidhi Marwah, Group Managing Director-South Asia and UAE and Managing Director-Global Accounts, The Executive Centre to understand how it has affected the Indian flex spaces market.
India is not isolated from global trends but our economy has high resilience. India’s large consumer base and talent pool continue to attract attention and investment. The growth drivers in India include IT services, BPO services, software services, e-commerce, manufacturing, healthcare, and flexible workspaces.
In 2022, the Indian market contributed 15 million to the global EBITDA of the The Executive Centre, with a 31% year-on-year increase. The average occupancy of their workspaces reached around 92%, and they added 1,000 workstations to their existing markets. In 2023, The Executive Centre plans to expand further by adding five more centres in Bangalore, Hyderabad, Gurgaon, and Mumbai, totalling around 1.5 million square feet.
Most of the flex spaces today focus on employee experience, wellness, collaboration, and technology integration. They believe that providing a comprehensive value proposition sets them apart from other workspace players. The executive centre has proven its sustainability and resilience during COVID-19, maintaining seamless operations and services. They plan to expand into tier-two cities in addition to the metros to tap into emerging markets and explore new opportunities.
Regarding real estate investment trusts (REITs) the industry needs to mature further before implementing REITs in the workspace sector. It is still in a nascent stage and needs time to settle and establish more structured operations. The next two to three years will determine the impact of the workspace industry on commercial real estate and its contribution to the Indian economy. Hong Kong, Australia, Japan, and Southeast Asian countries have proved to be great workspaces market.
Overall, this podcast emphasises The Executive Centre’s growth in India, the importance of providing a premium workspace experience, and the outlook for the Indian market and the flexible workspace industry.
(Host:Abhishek Law, Producer: Anjana PV)
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.