NEW DELHI: According to a report by myHQ, national flex workspace brands in India currently have a 19% pricing premium over independent operators, with this gap projected to grow to 25% by FY28.
The analysis covered 1,384 coworking centers across 30 cities, utilizing five years of transaction data from over 10,000 companies.
National brands such as WeWork, Awfis, Smartworks, 91Springboard, and Innov8 charge a median of ₹8,600 per seat per month from 2021 to 2026, compared to ₹7,200 per seat per month for independent operators in similar areas and quality categories.
This results in a ₹1,400 difference per seat per month, representing a 19% brand premium.
According to Utkarsh Kawatra, co-founder and CEO of myHQ, “The consistent premium of 17-20% reflects the value that enterprises place on predictability and standardized services, much like how travelers choose Marriott or Taj over standalone hotels.”
Kawatra anticipates the brand premium will increase as companies consolidate their workspace needs with multi-city operators.
Hyderabad saw the highest average seat growth at first expansion, reaching 187%, followed by Bengaluru at 147%, Noida at 91%, Delhi at 76%, and Gurugram at 67%, as reported.
This growth pattern in Hyderabad indicates rising demand from enterprises and rapidly growing companies in the Indian office market.
Startups with 1-15 seats experienced the most significant expansion after their initial booking, increasing their seat count by an average of 128% within three months.
Small and Medium Enterprises (MSMEs) booking 16-50 seats expanded at a slower rate, averaging a 60% growth over 3.8 months.
Larger enterprises with over 51 seats saw an average expansion of 59% in just 2.7 months, highlighting the increasing incorporation of flex workspaces into their core strategies.
The report also established a direct relationship between lock-in durations and pricing. Companies with shorter lock-ins paid a flexibility premium, whereas those with longer commitments enjoyed savings. A 24-month lock-in could save companies ₹9,600 per seat annually compared to a six-month lock-in, with the median premium for the shorter term being 8.2%.
Scale also influenced pricing; organizations typically saw volume discounts when exceeding the 50-seat mark, with potential savings of around ₹1,000 per seat per month, equating to a median discount of approximately 12%.
For instance, a 60-seat team could save roughly ₹7.2 lakh annually, while a 100-seat enterprise could save about ₹12 lakh annually. Over a 24-month lock-in period, these savings could amount to around ₹24 lakh.
