Hyderabad: Even as office space absorption in the last six months has breached the record levels, co-working space has emerged as one of the vital cogs in the supply chain in Hyderabad as well as other cities.
Co-working players take space from the builder or developer and sub-lease to smaller players or startups. While they take the space on a per sq ft basis, the sub-leasing will be on a per seat basis. The rent varies with the amenities provided.
Interiors, Internet and telephone connectivity, correspondence address and other features are offered by the co-working space providers. This is much like business centres, which give designated space. In a co-working space, there is no permanent seat.
Across the country, co-working space providers could have taken more than 1.3 million sq ft space in the last six months, according to Samson Arthur, Director – Hyderabad, Knight Frank.
According to him, co-working spaces bring players from related domains together. This will help other members present there. While shortage of office space is a concerns, the steady expansion of new businesses such as co-working space providers is one of the defining stories of 2017, said a report India Real Estate (July to Dec), brought out by Knight Frank.
The co-working phenomenon is gathering speed in India with players like Coworks, Weworks, Daftar India and Awfis taking up space in multiple cities.
In Hyderabad, there are many co-working players. “We have begun operations six months ago. We have about 100 seats and almost all are filled up. The demand for such co-working spaces is being fuelled by the rising number of startups in the city. More people are inclined at taking up entrepreneurship. Hyderabad has many co-working spaces and needs more,” said Shruthi Ramesh, founder, Jxtapose at Banjara Hills.
Jxtapose does many things. It is a co-working space, a platform to host cultural events, offers gallery and studio space for exhibitions and creative projects. It does some retail too. It has a café, allowing visitors to have a glimpse of the events happening at Jxtapose. Desk space rentals range from Rs 5,500 to Rs 7,000 varying with facilities. Occupants have access to studio space, high-speed Internet, free conference room hours, postal and courier management, postal address for correspondence and business registration, free prints, scans and other services.
In Bengaluru, co-working spaces accounted for six per cent of the total 5.91 million sq ft office space absorption seen in the last six months. WeWork, a global operator of co-working spaces, forayed into India in 2017 with their first workspace on Residency Road. In the Mumbai Metropolitan Region, co-working players transacted around 6,00,000 sq ft of space in the second-half of 2017.
The segment has been emerging as a new occupier category and has been taking up large spaces similar to what e-commerce companies did in 2014-15.
In NCR, players like WeWorks and CoWorks have been active in Gurugram and Daftar India in Noida, the report said.