US tariffs are unlikely to have any immediate impact on the demand for co-working spaces, Amit Ramani, Chairman and Managing Director of co-working and flexible office space major Awfis Space Solution Limited, told Moneycontrol in an interview. The company plans to spend Rs 200 crore as capital expenditure for its expansion in the financial year 2025-26.
He, however, cautioned that it would be hard to predict any long-term impact of tariffs on future flex space demand.
“It is a bit hard to predict the future (in terms of impact of US tariff on demand) unless and until we figure out where this all ends up but clearly today we do not see any impact on demand at all,” Ramani told Moneycontrol in an exclusive interview.
Explaining it, Ramani said that about 40 percent of the company's revenue comes from IT/ITES clients.
“Now IT/ITES clients, which if at all impacted, are the ones that are the traditional offshoring, outsourcing type companies," he said. The overall ecosystem of IT/ITES today, it is split into three parts. India facing, which is basically a company servicing the India or the Bharat ecosystem.
The second is IT offshoring, which has been there for the last 25 years and might have some impact but that demand is being supplemented by GCCs right there, said Ramani, adding that the rest of the demand ecosystem is a mix of diverse industries such as pharma, consulting, BFSI and healthcare.
“So, my overall sense is I don't anticipate any impact on demand, but again I think it's hard to predict where the tariffs will end up, but currently we don't see any impact to demand,” he said.
Expansion plans
Awfis Space Solution Limited, which listed on the stock exchange in May 2024, also plans to add 40,000 seats or roughly 2.2 million square feet (msf) of space across different parts of the country in FY26.
“We ended FY25 at about 1,35,000 seats and the plan is to add another 40,000 seats (about 2-2.2 msf) this year so we will be closer to about 1,75,000 seats by the end of FY26. Of 1, 75,000 seats we have complete visibility of 1,65,000 seats and obviously we still have eight months to add another 10,000,” he said.
Also Read: Awfis Q1FY26 operational revenue soars 30 percent YoY to Rs 335 crore
Ramani added that last year, Awfis had spent about Rs 200 crore towards capex. The company will spend another Rs 200 crore as capital expenditure in FY26 for growth and expansion plans.
Awfis is planning to add 13 more centres to its total portfolio. These centres will be spread across tier-1 and tier-2 cities. The company’s operational portfolio until June 2025 was 7.1 msf and it is expected to cross nine msf after opening of 13 centres and addition of 40,000 more seats.
The company is also planning to open a centre in Vijayawada in Andhra Pradesh. “We are currently in the process of final stages of finalising the space and we hope that in this year itself we will have a Vijayawada location,” he said.
Supply constraints in Tier-2 cities
Ramani said that over the last three to four years, an expansion has been seen happening across many Tier-2 cities including Indore, Jaipur, Kochi, Mohali, Chandigarh, Lucknow and Ahmedabad because of good demand.
“But having said that, the little bit of a roadblock that we see for Tier 2 cities is that we don't have compliant supply there. In addition, the developer community (in Tier-2 cities) obviously was not expecting this kind of a change to happen so currently supply has become the biggest roadblock,” he said.
He added that as more and more compliant supply comes, Tier-2 cities will evolve and become a much larger market.
The Delhi-headquartered flexible workspace solutions provider company, Awfis Space Solutions Limited (Awfis), has reported a 30 percent year-on-year (YoY) jump in its operational revenue for the quarter ended June 30, 2025.
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