The Executive Centre to double investment in Indian flex market in CY25, commits ₹180 cr in Q1

The Executive Centre (TEC) plans to double its investment in India’s flex-space market in CY25. The company is investing over ₹180 crore in the first quarter of CY25 to open new centres in Mumbai, Pune, and Bengaluru. The latest influx follows its ₹125 crore investment to establish eight new centres in Chennai, Hyderabad, Mumbai, Bengaluru, Gurgaon, and New Delhi, in October.

The company, claims to have consistently invested ₹200 crore annually and now aims to invest over ₹124 crore to establish one of its largest centres, spanning 1.3 lakh square feet, at the upcoming Prestige 101 building in BKC. “This will be TEC’s biggest investment in a single centre in India,” said Manish Khedia, Managing Director, West India, South India & Sri Lanka, The Executive Centre.

Khedia added that this expansion will add over 2.38 lakh square feet of office space to TEC India’s portfolio.

The company plans to fund this expansion by reinvesting its profits back into the business. “In 2023, TEC Group recorded nearly $56 million in EBITDA, which we reinvested in 2024. Over the past five years, the company has grown at a compound annual growth rate (CAGR) of 18 per cent. As of December 2024, we have an average occupancy of 92 per cent across India, with a total workstation count of 14,000,” said Khedia.

Focus on tier-1

While many flex-space providers are expanding into tier-2 and tier-3 cities, TEC remains focused on tier-1 markets. “We are not looking at expanding into tier-2 cities unless there is specific client demand. Our speculative investments will primarily remain within the seven cities where we currently operate.”

Within the last five years like flex office leasing in terms of the overall absorption used to be three to four per cent. Now it is just almost 17 per cent of the overall leasing which is absorbed by the flex office provider with GCC leasing alone standing at leasing of GCC last year was around 18 per cent.

Explaining the industry growth, Khedia noted that within the past five years, the share of flex office leasing in overall commercial absorption has grown from 3-4 per cent to nearly 17 per cent. Global Capability Centres (GCCs) alone accounted for approximately 18 per cent of flex office leasing last year.

Post-pandemic, the flex-space sector has experienced steady growth, increasing from $45 million to $70 million last year, with annual growth of 20-30 per cent. “We are targeting $100 million in the next three to four years,” Khedia stated.

TEC which predominantly operates in the APAC, UAE, and Australia markets, with India emerging as one of its strongest growth drivers, has its presence in 16 markets and 36 cities globally.