Increasing Demand For Coworking Space In India
Supply Creates Its Own Demand.
In the year of 2017, it was projected that more than 1.1 million people went to work, at a total of 13800 Coworking Spaces globally, according to the Global Coworking Survey 2017, to put the industry numbers in perspective, if each Coworking Space was owned by one enterprise, it would have more locations globally than Walmart.
Coworking Memberships have enjoyed steady growth since its ideation. As the nature of work evolves and the demand for better technology increases, the coworking industry would look much different in 2020 than it is today.
The Coworking trend in India has become increasingly popular in the two-major metro cities: Mumbai & Bengaluru, holding almost half of the coworking market size in the country.
The same is said to grow immensely within the next five years. In an earlier report, Knight Frank mentioned that Coworking Spaces took up about 1.8 million square feet of commercial real estate space in 2017. But the increasing demand has led the same industry to take up more that 2 million square feet of commercial real estate space in the first quarter of 2018 alone.
The report mentioned “While Coworking companies accounted for just under 1.8 million square feet of the 41 million square feet annual commercial office space transactions volume, the expansion plans of the major players and the increasing appetite for this format from occupiers, property owners and co-working operators should see annual transaction numbers triple from current levels over the next three years.”
Freelancers and startups were the initial target consumers for the coworking industry, but the target industry for coworking spaces did not remain limited to the start-ups and freelancers. It wasn’t long after coworking spaces made their presence felt in Indian cities that large corporations and multinational companies took notice of the pros of the coworking spaces. The coworking industry popularity reached its peak in no time. Entrepreneurs, freelancers, start-ups have been choosing to share office space for a while now, but corporate organisations as well, willing to cut rising expenses, are embracing the coworking industry, which has disrupted the traditional norms of the way business works. According to a report by Forbes “40% of the workforce will be freelancers, independent contractors, and solopreneurs by 2020.”
Coworking Spaces are now playing the key role of bridging the gap between demand and supply through well-equipped plug & play setups along with all the necessary amenities required for any business to move in without any wastage of time or investment into resources. Long distances, congested urban commute and increased amount of time spent to travel to a workplace, higher operating expenses and the challenges of retaining the top talent of the industry have led to a vast increase in the number of people telecommuting and working remotely or from locations of their choice. Startups, freelancers and entrepreneurs have begun moving into previously-out-of-bound and swanky offices, thanks to the coworking industry. As per another report by CBRE, “Coworking companies would take up almost 10 million square feet of office space by the year 2020.”
“Coworking is proving to be one of the most ideal workspace solutions for all kinds of businesses ranging from freelancers to larger corporations. With a multitude of services and community driven ecosystems at affordable pricing and such flexibility, coworking spaces have given and met the demands of the serviced industry with a whole new approach. Coworking is a different form of business, with its own demands and its own differences” – Akshit Mehta, Founder, Vorq Space
Co-working is a movement that is not only teaching people to work together, but to think, interact & create together. It is laying down principles on how people would interact with each other, embalming a sense of community as well as shared economy. This movement is about to grow larger as we move from an industrial economy to a knowledge based one. Over the next few years, the sector will see an increasing demand for coworking spaces from larger businesses, as corporate occupiers embrace a more dynamic coworking culture or shorter and lower-risk leases.
“The needs of today’s business era should be supplied before the wants. Over the next few years, the sector will see an increasing need for coworking spaces from larger businesses, as corporate occupiers embrace a more dynamic coworking culture or shorter and lower-risk leases. From the looks of it, Coworking is powerful enough that I don’t see it as a dying industry. It is here to stay and to set a base for the future of work.” – Akshit Mehta, Founder, Vorq Space
As quoted in a report by GCUC (Global Coworking Unconference Conference), “Coworking is a global phenomenon: Coworking is growing around the world and most major cities have coworking spaces. Asia/Pacific (which includes India in our work), and especially China, have embraced coworking, making APAC the world’s largest coworking market.”