Hyderabad: There are more than 200 players operating the current stock of over 420 workspaces (both branded and non-branded) across the country. This number is likely to increase two to three fold over the next two years alone. This apart, with office rents rising across India, the total space occupied by co-working spaces is likely to witness at least a 30-40 per cent annual increase. Cities that will offer the best opportunities for this trend include Bengaluru, NCR and Mumbai, followed by Hyderabad and Chennai, according to Anarock.
With businesses big and small continuing to grow and broaden their horizons, expensive real estate coupled with new-age professional’s desire to work in an aesthetically appealing environment have spurred demand for collaborative workspaces in India. In fact, the new millennial workforce will accelerate this changing office dynamic further in the years to come.
As per statistics, millennials are set to form 50 per cent of the global workforce by 2020 and India is the youngest startup nation in the world, with a rapidly-increasing millennial workforce. This generation is ready to ditch conventional workspaces for more swanky, flexible and cost-effective office spaces that effortlessly embrace the latest technologies into their system.
Anuj Puri, chairman, Anarock Property Consultants said, “Despite all the teething issues that co-working spaces face, these ‘cool’ offices will be the global new normal. However, co-working spaces will also need to invent, innovate and re-strategise their business models in order to create win-win situations for all. For instance, they will need to move away from the current lease-based structure to probably the ownership model developed in partnership with the land owner, developer or even the space provider. This will offer more flexibility in building a property as per the business needs, reduce costs for clients and enhance flexibility – with the promise of becoming India’s preferred default work ecosystem.”
To meet this growing demand, India definitely needs more co-working spaces. Moreover, co-working is proving to be cost-efficient by nearly 15-25 per cent by cutting down rental costs, fixed-capital investments and property maintenance.