Magnolia Quality Development Corporation (MQDC), a Bangkok-based property development firm, has signed a lease for approximately 45,000 square feet of space in Gurgaon, marking the construction of the country’s second coworking hub.
The deal was confirmed by Chulamas Jitpatima, country director of the company’s Indian division. MQDC entered the Indian market in 2019 with the opening of Whizdom Club, a coworking space in Delhi. However, the company’s expansion aspirations were put on hold for the time being.
Aside from the most recent development, MQDC is now negotiating with multiple landowners to acquire a large plot of land for a residential project in the National Capital Region (NCR).
When MQDC first entered the Indian market, it announced aspirations to open five to six centres within three years, with Bengaluru and Mumbai as potential destinations.
According to CBRE, the combined proportion of banking, financial services, and insurance (BFSI) corporations and flexible space operators climbed to 44% in the March quarter from 20% the previous quarter due to a considerable increase in large-sized deal closing.
During the January-March period, flexible space operators, BFSI enterprises, and technology firms dominated leasing activity.
The share of leasing by flexible space operators in total leasing has increased “Since the pandemic. Majority of domestic and global operators are trying to extend their presence as existing hubs have very low vacancy rates. “We expect the portfolio to rise further in the coming quarters,” said Vibhor Jain, managing director, Cushman & Wakefield, North India.
MQDC plans to launch its flagship luxury residential real estate project in India and is in discussions with property advisors and developers to explore a deal.
The company intends to tread carefully in the coworking category, keeping the size of the facility between 20,000 and 25,000 square feet. Because it is constructing luxury spaces, its target in the coworking category is small and medium firms, multinationals, and mature startups.
Gurgaon accounted for 72% of leasing actions in the fourth quarter of the last year, led by submarkets such as Golf Course Extension Road, NH8 Prime, and Sohna Road. Noida, on the other hand, accounted for 25% of lease activity, according to Cushman & Wakefield data.
Source-The Economic Times