WeWork India, a shared workspace operator, is set to introduce more than 2 million square feet of space with 2,000 seats across two floors in Chennai’s Guindy locality this fiscal year with launching of Olympia Cyberspace.
By March 2025, the company's desk count is expected to range between 100,000 and 110,000, according to CEO Karan Virwani. During a discussion with CNBC-TV18, Virwani mentioned that eWork will concentrate on Hyderabad, Chennai, and Pune as its primary growth markets moving forward.
WeWork's 55th facility in the country covers an impressive area of 1.3 lakh square feet and accommodates 2,000 seats spread across two floors. With its presence in eight cities across the country, this office space provider continues to expand its reach.
The chief Executive Karan Virwani mentioned,"We have been renting out 30,000 desks across 2 to 3 million square feet per city in Bengaluru, Mumbai and Gurugram.We are now focusing on cities like Hyderabad, Pune and Chennai as our next big growth markets."
He unveiled that WeWork India is looking to service anywhere up to 2 million square feet each in these markets over the next three years.
WeWork India has recently opened its first shared workspace center in Chennai, marking its 55th location in India. Covering 1.3 lakh square feet with 2,000 desks, the company has successfully entered the Chennai market despite arriving relatively late.
Nationally, WeWork India operates in 8 million square feet, serving over 70,000 members with 90,000 desks and maintaining an average occupancy rate of 82%. The decision to expand into Chennai was influenced by the growing number of Global Capability Centers (GCCs) in the city.
Virwani,also added that,the demand for shared workspaces in Chennai has reached a "critical mass," reflecting the overall growth of India's co-working market as the largest in the world.
Chennai has rapidly evolved into a significant office market in India, demonstrating strong demand and supply indicators in recent times. As per a study conducted by property advisory firm Savills, Chennai experienced a remarkable 31% increase in office leasing demand, reaching a record high of 9.6 million square feet in 2023. Notably, co-working spaces played a pivotal role, accounting for almost 20% of the overall commercial real estate absorption.
WeWork India has stated that there is a significant demand emerging from diverse sectors such as agri-tech, manufacturing, IT/ITES/ HR, and more. Chennai has become a flourishing business hub for freelancers, entrepreneurs, enterprises, and global capability centers.
Currently, the majority of WeWork India's clientele consists of enterprises, making up 80% of the total, while start-ups make up the remaining 20%. WeWork India has stated that there is a growing trend of both enterprises and start-ups opting for shared workspaces, as they recognize the enhanced value proposition it offers.
In 2017, WeWork made its foray into the Indian market and has subsequently grown its footprint to encompass 55 sites throughout the nation. Its operations span across various cities including New Delhi, Gurugram, Noida, Mumbai, Bengaluru, Pune, and Hyderabad.
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