Real Estate Market and Co-Working Spaces in India

Real Estate Market and Co-Working Spaces in India

Authors: Dezshira & Associates

Market prices for leasing or renting an office space not only differ from one city to another but also within the city. Many factors affect the rent of a place such as location, building amenities, lease term, number of seats, connectivity options, layout, etc.

The following chapter is intended to give a brief overview of the most important aspects when deciding on a suitable location, including the following aspects:

1. Renting an Office
2.  Real Estate Developers
3. Real Estate Agents
4. Co Working Spaces
5. National and Local Contacts

Most of the start-ups in India are originating from the Metropolitan cities. Top cities housing the start-ups in India are Bengaluru, Delhi NCR and Mumbai. Nearly two-thirds of the start-ups are from these three cities. Hyderabad, Pune, Chennai, and Kolkata are other notable cities which are home to some of the promising start-ups.

 

1. Renting an Office

Within the cities, there are areas where office buildings/ towers have formed corporate clusters. Prominent areas in Delhi NCR, Mumbai, and Bengaluru where an office space can be sought include:

Delhi NCR

Connaught Place– Considered to be one of the costliest places to rent an office space in India, Connaught Place is a central business district of the capital and one of the largest financial, commercial, and business centers of Delhi. Average rent rates usually start from INR 140-160 per sqft.

NehruPlace– It is a large commercial, financial, and business centre in Delhi. Office spaces and hotels are easily available in this part of the city. It is regarded as the center for small scale IT services and IT hardware equipment in Delhi. Average rent rates usually start from INR 75-85 per sqft.

Saket– It has become one of the most popular destinations for shopping and office spaces in Delhi. Its proximity to residential areas such as Greater Kailash, Panchsheel Enclave, CR Park, and Malviya Nagar makes it a commute friendly place. Average rent rates usually start from INR 90-100 per sqft.

Netaji Subash Place– It’s one of the biggest business hubs of North Delhi. It has a good mix of office space and retail outlets. Average rent rates usually start from INR 70-85 per sqft.

Gurgaon– It has become a leading IT and industrial hub with the third-highest per capita income in India. As Gurgaon is a satellite city of Delhi, there are many areas where an office space can be set up. Average rent rates usually start from INR 100-110 per sqft on MG Road, INR 90-100 per sqft on Golf course road, INR 80-100 per sqft in DLF Phase 1-5. Lower rates can be expected towards Manesar and Sohna road side.

Noida– Being a satellite city of Delhi, it is part of the National Capital Region of India. It has also become a prominent center for manufacturing and IT companies. Average rent rates usually start from INR 50-60 per sqft.

Mumbai

Bandra Kurla Complex– BKC is a commercial hub in the city of Mumbai. It houses several organisations such as Citibank, Amazon.com, ICICI bank, etc. Average rent rates usually start from INR 150-170 per sqft.

Andheri East-The railway station in Mumbai divides Andheri into Andheri East and Andheri West. Andheri East is one of the prominent business hubs in Mumbai and hosts several notable companies such as Syntel, Jet Airways, Abott Healthcare, etc. Average rent rates usually start from INR 90-110 per sqft.

Nariman Point– House to some of the most prominent financial and business institutions in India, Nariman Point is a business district in South Mumbai and is one of the most expensive locations in the world for renting/ purchasing office space. Some of the companies located here are Boston Consulting Group, Royal Bank of Scotland, JP Morgan, Dezan Shira & Associates, etc. Average rent rates usually start from INR 160-180 per sqft.

Fort Area– A business district, it is the heart of the financial area in the city with institutions such as Bombay Stock Exchange, Reserve Bank of India, among others having their headquarters. Average rent rates usually start from INR 130-140 per sqft

Thane– Many small and medium companies and corporates find Thane as the best place to start their operations. It is in the eastern suburb of the state and has cheaper rentals than South Mumbai. Average rent rates usually start from INR 80-90 per sqft.

Bengaluru

Koramangala–From e-commerce giant Flipkart to major cab service provider Ola, this place in South Bangalore is home to many Indian start-ups. Average rent rates usually start from INR 55-60 per sqft.

Indiranagar– One of the Bengaluru’s newer areas, it is a commercial hub and is located in east central part of the state. Rates may be slightly more expensive when compared with other areas. Average rent rates usually start from INR 60-65 per sqft.

Whitefield– It has several IT parks including the famous International Tech Park. Big IT corporates such as Accenture, IBM, HP, etc. have set up their offices in this part of the city. Average rent rates usually start from INR 55-60 per sqft.

Marathahalli– It is a residential as well as commercial locality, situated in the south-eastern part of Bangalore. It has less number of IT parks. Average rent rates usually start from INR 50-55 per sqft

ElectronicCity– It is the Information Technology hub of the state and is one of India’s largest electronic/ IT parks with home to major IT companies Infosys, TCS, HCL. Average rent rates usually start from INR 50-60 per sqft.

Above mentioned prices are just a rough estimate. Prices may vary considerably because of several parameters such as building condition, office amenities, real estate market condition, lease period, area rented, etc.

Available office space and the associated rental price can be checked on popular real estate websites of India such as 99Acres, Magicbricks, Quikr, JLL.

 

2. Real Estate Developers

Real estate development firms have constructed commercial properties (commercial towers, IT parks) in major Indian cities like Delhi, Bangalore, Hyderabad, Mumbai, Chennai, Pune, Kolkata, etc. Top brands and multinational firms have offices in these commercial hubs. Following are some of the prominent real estate developers in India with some of their well-known commercial projects like DLF, Unitech or Godrej:

Developers Cities Prominent Existing projects Companies Present Upcoming Projects
DLF New Delhi, Gurugram, Chennai, Hyderabad,
Kolkata, Chandigarh, Chennai
DLF
Cybercity, Gurgaon
Deloitte, Ericsson, Accenture, Cvent, Pepsi DLF
IT Park, Chennai
DLF
Epitome, Gurgaon
DLF
Infinity Towers, GurgaonDLF
Plaza Tower, Gurgaon
DLF World
Tech Park, Hyderabad
Cognizant, Rockwell, Genpact, Hitachi
DLF IT
Park, Kolkata
Nestle, HP, GlaxoSmithKline, L&T
Unitech Kolkata, Noida, Gurgaon TCS, Accenture, Genpact Nirvana
Courtyards II, Gurgaon Signature
Towers III, GurgaonUniworld
Towers, Gurgaon
Global
Business Park, Gurgaon
Asahi, Pepsi Co., Perfetti, AT Kearney
Unitech
Infospace, Kolkata
Cognizant, Tata Consultancy Services,
Accenture
Godrej Pune, Kolkata, Mumbai Godrej
Genesis, Kolkata
L& T, Cisco Systems, KPMG Godrej
BKC, Mumbai Godrej
Eternia, Chandigarh
Godrej
Castlemaine, Pune
KPMG, Omniscient Solutions
Godrej
One, Mumbai
Merck, L & T
Brigade
Tech Park, Bangalore
IBS Software, Capgemini, LG CNS
World
Trade Centre, Kochi
KPMG, Xerox

Please also have a look at the other Real Estate Developers, such as India Bulls, Eros Group, Lodha Group, Larson and Toubroor Brigade Group.

 

3. Real Estate Agents

Real Estate Agents connect the owner or the builder with the client and charge a commission in return. These agents help in finding leasing locations to the clients. Following are a few prominent real estate agent firms which have a pan India or multi-city presence in India like JLLHSN Realty or CBRE:

Firm Cities Prominent Properties
JLL Ahmedabad, Delhi, Mumbai, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Kochi, Coimbatore – Rolta Corporate Tower, Gurgaon
– NESCO IT Park-Building 4, Mumbai
– The Hub Thergaon, Pune
– Shailendra Techno Park, Bangalore
JLL Delhi NCR – Eros corporate tower, Delhi
– Statesman House, Delhi
– World Trade Tower, Noida
– DLF Corporate Park, Gurgaon
– Worldmark Tower 1, Aerocity
CBRE Delhi, Bangalore, Chennai, Hyderabad, Mumbai, Pune, Thiruvananthapuram – North Gate Phase 1 SEZ, Bangalore
– Power Mech IT Park, Hyderabad,
– Dyna Business Park, Mumbai

First Lease, Colliers International, Cushman and Wakefield, Savills, Leasing India are some of the other noteworthy firms which provide real estate agent services in multiple cities of India.

Apart from these firms, local real estate agents can be found on the real estate websites such as 99Acres for commercial space leasing and purchasing.

 

4. Co working spaces

Co working spaces are a good option for start-ups in their nascent stage. They are cost effective compared to renting an office space and provide a plethora of dynamic services. Co working spaces also provide an ecosystem of like-minded organisations to connect with on regular basis. The following are some of the prominent firms providing co working spaces in major Indian cities like WeWork, CoWrks, 91springboard:

Firm Operational Cities Operational since Approx. No. of Seats Approx. starting prices – per month per person
WeWork Bengaluru, Gurgaon, Mumbai 2010 15.100 INR 7.000
(Hot Desk)
CoWrks Bengaluru, Mumbai, Gurgaon, Chennai, Hyderabad 2016 10.000+ INR 10.500
(Flexible Desk)
91springboard Bangalore, Delhi, Gurgaon, Goa, Hyderabad, Noida, Mumbai, Pune 2013 8.130 INR 6000
(Open Desk)

Please also have a look at the other co-workingspaces providers, such as Awfis, Vatika Co-working Spaces, Innov8, Coworkyard India, iKeva, Skootr, Regus.

All the above given prices are approximate in value, taken for Gurgaon location. These prices are subject to change depending upon the chosen locations and the facilities taken. Negotiations in pricing may also be possible with the service provider.

Platforms such as Coworker may also be used for exploring different coworking options available in various cities of India.

Co-working is a trend which has strongly impacted the work culture of India. Start-ups, freelancers, Indian corporations and MNCs are gravitating towards co-working spaces. These co-working spaces are not only present in Tier I cities like New Delhi, Mumbai, Pune and Bangalore, but have also penetrated Tier II cities like Guwahati, Chandigarh and Kochi. With the unprecedented growth of the Indian start-up ecosystem, it seems that Indian co-working industry will continue to flourish.

 

5. National and Local Contacts when looking for an office in India

Incubators – Business incubators usually help the start-up/ early stage companies to grow their business by providing few or all of the following services: Workspace, Infrastructure, Funding, Mentoring, Training. Government of India understands the importance of Incubators and believes that an increase in the number of incubators would have a positive implication on the overall start-up ecosystem of the country. One such example is Centre for Incubation and Business Acceleration (CIBA), which is a Technology Business Incubator supported by Department of Science & Technology, Government of India under the Startup India Action Plan. It provides workspace facilities (fully furnished A/C office, conference rooms, cafeteria, private and open workstations, internet, etc.) in Mumbai. Charges for becoming a member are: INR 5000 per person per month – Private Cabin; INR 4500 per person per month – Open dedicated desk; INR 4000 per person per month – Open floating desk. Rates are subsidized as the incubator is being supported by government. CIBA can be contacted here. Under the Start-up India initiative, government has released a list of incubators along with the contact details, which can be accessed here.

Trademark Facilitators – A list of trademark facilitators can be accessed on the government’s Startup India website.

Patent Facilitators – A list of patent facilitators can be accessed on the government’s Startup India website.

SEBI Registered Investment Funds – A list of registered investment fund can be accessed on the government’s Startup India website.

German Embassy in India – The German Embassy is located in the state of New Delhi with German consulate offices in Bengaluru, Chennai, Kolkata, and Mumbai. German Embassy in India can be reached here.

Indo German Chamber of Commerce (IGCC) – IGCC is closely working on the Indo-German start-up scene. Some of its projects such as StartHubs AsiaBerlin network (SUAB), RuhrSummit 2017, provide a great platform to start-ups for networking and pitching their ideas. It actively helps the organizations in exploring one of the fastest growing start-up ecosystems in the world – India. It has offices in Mumbai, Delhi, Chennai, Bengaluru, and Pune. IGCC can be reached here for start-up and other business-related enquiries.

Startup India Hub – Connect with other start-ups, investors, and mentors – The Startup India Hub is developed under Startup India, the flagship initiative of the Government of India. It is hosted under Invest India – the national investment promotion and facilitation agency of India. To connect with other start-ups, investors, and mentors, please click here.

State Wise profile – Individual State websites which are run by the government provide general information about the particular state along with other state related information such as various state government departments, list of available e-services, notifications, announcements, etc. To visit the website of individual states of India, please click here.
To view the state wise profile from business point of view, please visit the Invest India website and click on states option given on the home page. This listing gives information on upcoming projects, logistics network, key sectors, and major investors/ companies in a particular state. To access the profile of Delhi, please click here.

Local Land and Utility rates – It is difficult to present one rate for land and utilities even for an individual state. Depending upon the locality, the land rates differ. However, government of India has shared a sheet containing the range of land and utility (water, power, gas) rates in USD across select states in India. To access this list, please click here.

Local Authorities – Government of India has provided the list of local authorities on its GOI web directory website. To get state wise information on local bodies, state districts, statutory bodies and commissions, etc. please click here.

 

 

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