Flexible office space operators secure $820 million in PE funding since 2017 : Report , ET RealEstate

Knight Frank India s report on the flexible office space sector reveals significant fluctuations in Private Equity (PE) investments since 2017. Initially, investments grew from USD 25 million in 2017 to USD 49 million in 2018, and then surged to USD 113 million in 2019, driven by investors like CLSA Capital and Peak XV Partners. However, due to the impact of Covid-19, investments plummeted to USD 11 million in 2020 and further to USD 6 million in 2021. In 2022, there was a resurgence in investments, reaching USD 595 million, supported by deals from Hillhouse Capital and Actis. Nevertheless, the investments sharply dropped to USD 13 million in 2024. Despite the fluctuations, the sector has secured a total of 52.9 million sq ft (msf) in leases from 2017 to the first half of 2024, with a robust Compound Annual Growth Rate (CAGR) of 22%. Shishir Baijal, Knight Frank India s Chairman and Managing Director, highlighted the dynamic nature of India s commercial real estate market and the industry s resilience. He emphasized the increasing demand for innovative office spaces, as occupiers now prioritize employee well-being. Flexible office space operators are well-positioned to meet these evolving demands. The report also noted that the flexible space sector is embracing Environmental, Social, and Governance (ESG) principles and cutting-edge technology, setting the agenda for the future of workspaces. The sector s ability to adapt and innovate has been crucial in navigating the challenges posed by the Covid-19 pandemic and maintaining growth momentum. In summary, despite the fluctuations in PE investments, the flexible office space sector in India has experienced significant growth, driven by rising demand from corporates and a focus on employee well-being. The sector s resilience

Source: realty.economictimes.indiatimes.com
Published on 2024-09-25