Co-working demand to surge in Hyderabad
Hyderabad-based iSprout witnesses new business models that will drive its growth pan-India
Hyderabad: The pandemic has been an unforeseen scenario, which led to one of the biggest shifts in the world, that of working from home. Even though some people were already used to a home office, most weren’t. As employees do not want to come to office because of safety concerns and the remote working doesn’t suit a majority of the workforce, there is a gradual uptake in co-working space.
“Co-working spaces don’t just serve the needs of remote workers; they are a crucial support structure for start-ups, small businesses, sole proprietors, the self-employed and other entrepreneurs. In particular, they are a lifeline for small businesses that “operate on the periphery” of local economies. For many of them, working from home doesn’t provide a solution,” iSprout Business Center CEO and co-founder Sundari Patibandla told Telangana Today.
The advantage with co-working space is a lesser commitment of the lease period, and its suitability to use even on a daily or hourly basis. Apart from low investment, the clients have the flexibility of either reducing or increasing the team strength as and when required. Companies don’t need to splurge on infrastructure when they opt for readymade offices.
WFH challenges
Citing employee-oriented factors that are driving co-working space demand, she says, employees lack physical infrastructure at home. In metropolitan cities where real estate is expensive, many professionals live in small two- or three-bedroom apartments along with their partner, children or parents, or all three. There’s no space for an exclusive workstation.
Freshers usually opt for guest accommodation or shared apartments, which provide them with little space or privacy. In some of the guest accommodations, the Wi-Fi is patchy, leading to stress and anxiety. Young professionals also lose out on experiential learning if they work alone. All these aspects call for alternatives to work near home.
She added, “Hyderabad roughly has 90 co-working players like iSprout Business Center, cumulatively offering around 60,000 seating capacity. During Covid times as well as when the crisis is over, community strength will be essential in helping businesses reconnect, build new networks and support each other. That’s what effective co-working spaces do. They are community hubs and essential sources of local connect, which will aid in rebounding from the crisis.”
Structural changes
Post Covid, there is a structural change in office leasing in Hyderabad and other cities where MNCs are choosing the building and they are asking the developer or co-working space company to provide plug-and-play facilities. Developer and the co-working space company enter into a revenue-sharing agreement accordingly.
“iSprout has signed a deal in Pune for a 400-seat facility in this model and it will be delivered in one month. We are also seeing the average size of co-working space in buildings and client occupancy growing gradually. Another new trend is issuing of day passes so that employees can use any co-working facility within the city or other cities of the operator,” she added.
Pan-India expansion
iSprout currently has 5,000 workstations spread across Hyderabad, Chennai, Vijayawada and Pune and 1,500 seats are being added in the next 3-4 months. The company has four facilities in Hyderabad with 3,000 seats while the fifth facility is under development. There are plans to enter into Bengaluru and Gurugram this year. Enquiries are picking up with vaccine announcements, added Patibandla.
Co-working space as a proportion of overall office leasing in India which was in lower single digits a few years ago is now touching close to 15-20 per cent, which is a sign of its fast-paced adoption.
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