Smartworks Coworking Spaces is investing ₹17 crore to add 1.25 lakh sq. ft. in Hyderabad, boosting capacity amid strong demand. With 84% utilisation across its portfolio, the expansion highlights rising enterprise adoption of flexible workspaces and the company’s strategy to scale in high-growth office markets.
Smartworks Coworking Spaces has announced a significant expansion in Hyderabad, adding over 1,25,906 square feet of workspace capacity. The move is backed by an investment of approximately ₹17 crore and is aimed at strengthening the company’s presence in one of India’s fastest-growing office markets.
The expansion is supported by a newly signed lease agreement and is expected to be completed by April 2026, reflecting a quick turnaround in bringing additional inventory to market.
Scaling Capacity to Meet Rising Demand
The latest addition aligns with Smartworks’ broader strategy of scaling operations to meet rising enterprise demand for managed office spaces. Hyderabad has emerged as a key hub for technology firms and Global Capability Centres (GCCs), making it a priority market for flexible workspace providers.
As corporates increasingly opt for flexible, scalable office solutions, operators like Smartworks are expanding aggressively to capture this demand and strengthen their market position.
Strong Portfolio Performance Supports Growth
According to the company’s regulatory filing, Smartworks currently has a total leased portfolio of 11.1 million square feet, out of which 9.2 million square feet is operational. The portfolio is utilised at a healthy 84% as of December 31, 2025.
This high occupancy level indicates strong traction among enterprise clients and provides a solid foundation for further expansion. It also reflects the growing acceptance of managed workspaces as a mainstream office solution.
Investment Backed by Internal Resources
The ₹17 crore investment for the Hyderabad expansion will be funded through internal accruals or proceeds from recent financial activities, as stated in the filing. This approach highlights the company’s focus on maintaining financial discipline while expanding its footprint.
By leveraging internal capital, Smartworks can scale efficiently without over-reliance on external funding, ensuring sustainable expansion in competitive markets.
Flex Segment Continues to Gain Momentum
The expansion underscores the broader momentum in India’s flexible workspace segment. As businesses adapt to hybrid work models and prioritise agility, demand for plug-and-play office solutions is increasing across major cities.
Flexible workspace providers are now catering not just to startups but also to large enterprises, offering customised solutions that combine scalability with operational efficiency.
Growth to Continue in Key Cities
Smartworks’ latest move reflects a clear focus on deepening its presence in high-demand markets like Hyderabad. With strong occupancy levels and a growing client base, the company is well-positioned to capitalise on the next phase of demand in the office sector.
As more companies look for flexible, cost-effective, and scalable workspace solutions, expansions like this are expected to continue, further strengthening the role of coworking operators in India’s commercial real estate ecosystem.
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