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    India Among The Top Flexible and Cost Efficient Office Locations in the World: Report

    • 5 min read
    • Last Modified Date: August 30, 2023
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    We all want fast pleasure in today’s world. Even though patience and discipline generate greater results, we nevertheless want to accomplish all of our life objectives as quickly as possible. This is also true with investing. We aim to make the most money in the quickest amount of time. It is for this reason that we will always be on the lookout for better investment opportunities that will allow us to double or triple our money.

    The cost of operating a flexible office in India is among the lowest in the world, with New York being the most costly. The most costly office locations in the world include New York, San Francisco, Singapore, London, and Berlin, with per-seat rentals ranging from Rs 60,000 to Rs 72,000. In India, Mumbai is the most costly flexible office location, with an average price of Rs 20,420, followed by the National Capital Region (NCR) with an average rate of Rs 14,759.

    New trends in the flexible workplaces category have emerged in India. Coworking spaces are always changing and rethinking their strategy to attract more investment. Employees choose a hybrid work situation that provides greater flexibility, as many organizations desire a return to the office.

    Also Read: Institutional Investments To Touch $1.1 Billion In The First Quarter of 2022: Report

    India Is a Top Real Estate Market

    In the Asia Pacific area, India has one of the largest office marketplaces. IT/ITeS, BFSI, and consultancy tenants have been the main demand drivers for office space. With over 125,000 total seats, the main operators in India include Awfis, WeWork, CoWrks, Smartworks, and Tablespace. While technology occupiers keep driving demand, flexible workspaces had gained traction, accounting for 13% of total office demand in 2021 (639.9 million square feet).

    The rise of India as a startup powerhouse has also boosted the demand for flexible spaces. They’ve reimagined their products and repositioned themselves to be more relevant in today’s changing environment. Most employees see time and distance as major issues, resulting in a high demand concentration in the suburbs and outskirts of cities. For space management, flexibility is viewed as a positive.

    Because occupiers are focused on creating an updated office strategy around a place employees want to be in and an atmosphere that complements their desired culture, the flexible market is currently dominated by high-quality spaces. Businesses want to locate near subway stations to make commuting more convenient and reduce trip times. London, one of the world’s most mature flexible markets, was now undergoing a robust comeback.

    Because of the vast number of flex spaces, there is a wide range of pricing models and quality, which means that the rate of perceived recovery, when just pricing is considered, is slightly lower than expected since some operators are prepared to lower rates to raise occupancy levels. Aside from being flexible, the market has a restricted supply, with a 3.5 percent vacancy rate. The flexible market is growing thanks to the research, digital, and technology sectors, which kept it afloat throughout the Covid-19 epidemic, with just a 1.4 percent drop in space over the 2 years of the pandemic.

    This trend is expected to continue as Tesla prepares to start producing electric vehicles after its first European manufacturing factory, which is located near the city; there is also plenty of venture capital investment available for creative start-ups.

    Lisbon, which has one of the cheapest flex markets in the world – at $329 per desk per month – has seen a surge in business as traditional office space has become scarce. Lisbon has a 7% total office vacancy rate, making it one of Europe’s most competitive flexible markets.

    Also Read: Real Estate Investing Is Easy With These 4 Modern Methods In 2022

    Why Invest in India?

    Semi-urban and rural investors are prepared to commit a bigger share of their resources to financial assets in 2022, based on the profitability of their investments in 2021, according to an investment poll.

    According to a poll issued on Tuesday by the full-stack financial services platform, roughly 9.21 percent of people are eager to invest more than half of their income this year, while another 7.97 percent want to invest 40-50 percent of their income. According to the poll, the majority of respondents (43.17 percent) want to invest 10-25 percent of their income in 2022.

    In the Asia Pacific area, India has one of the largest office marketplaces. IT/ITeS, BFSI, and consultancy tenants have been the main demand drivers for office space. With over 125,000 total seats, the main operators in India include Awfis, WeWork, CoWrks, Smartworks, and Tablespace. While technology occupiers keep driving demand, flexible workspaces had gained traction, accounting for 13% of total office demand in 2021 (639.9 million square feet).

    The rise of India as a startup powerhouse has also boosted the demand for flexible spaces. They’ve reimagined their products and repositioned themselves to be more relevant in today’s changing environment.

    Also Read:

    1. Investing in a variety of different investment baskets

    According to the poll, investors throughout India (urban, semi-urban, and rural) are eager to explore numerous investment baskets in 2022. Initial public offerings (IPOs), cryptocurrencies, and even equities traded on US stock markets may all be part of the allocation in 2022. About 61.3 percent of those polled said they’d like to learn more about initial public offerings (IPOs), while 44.8 percent said they’d be interested to try bitcoin. REITs and digital gold were also on the list of assets to target in 2022. Surprisingly, just 27.7% of respondents are unwilling to experiment with untested asset classes, according to the report.

    When asked what sort of stocks they want to invest in 2022, 56% said they want to invest in IT stocks, and 13.3% said they want to invest in penny stocks, with 7.7%, 7.1 percent, and 6.8% saying they want to invest in pharma, real estate, and FMCG, respectively.

    2. Investing portfolio diversification

    Furthermore, a large majority of respondents throughout India agreed to increase their stock market and mutual fund investments for long-term benefits (36.2%) in 2021, despite less than a quarter wanting to generate short-term gains (22.8 percent).

    When asked about their investment strategy for 2022, 51% indicated they would be aggressive, while 49% said they would be cautious. Only 11.2 percent predict a gloomy spell till June 2022. According to the poll, investors also want to expand their mutual fund investments, with 82 percent expecting to do so in 2022, up from 66.8% in 2021. Do you wish to invest in commercial real estate fractional ownership and real estate crowdfunding? Assetmonk is a high-end real estate crowdfunding company established in Hyderabad that offers fractional ownership possibilities in Hyderabad, Bangalore, and Chennai.

    FAQ’S On Office Spaces in India

    1. Is office space a good investment?

    Office spaces might be a solid investment for a clever investor looking to diversify his real estate portfolio. Investing in offices, one of two types of commercial real estate (the other being retail), is a fantastic method to make a significant rental income while also benefiting from capital growth.

    2. What type of commercial property is most profitable?

    Since the establishment of the United States, commercial real estate has been regarded as the most rewarding kind of property investment.

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