Coworking to dominate the future of workspaces in India

Coworking spaces

“Flexibility” has become a new mantra of success. The rise in the entrepreneurial culture, the boost in the startups, the introduction of Hybrid model, all these factors have contributed to the growth of coworking spaces in India. Many companies are finding these flexible spaces best for the expansion of their business in the corporate world and it also adds up to the ecosystem of their workforces. The current work system is highly dominated by the technology and innovative approaches. Coworking is one such flexible way to improve the ecosystem of work. The idea of coworking has indeed come as a boon for businesses as thousands of emerging startups are gaining a lot of exposure with this modern work culture.

What drives the growth of coworking?

In the Post-COVID era, every company, big or small, is looking to adapt the emerging trends of flexible working in order to maintain their reputation in the market. Large corporate offices are moving out from their traditional workplaces and opting for coworking spaces to set up their teams. Apart from this, many organizations in top metro cities such as Delhi, Mumbai, and Bengaluru have also embraced the concept of coworking as they are shifting towards Hybrid model of work.

The rise of entrepreneurial spirit, especially in millennials, along with enhanced infrastructure development, improved internet services, large-scale technology deployment, and ease of doing business has made India the third-largest startup hub across the world. This acceleration in India’s corporate network has led to an unbelievable surge in the demand for coworking spaces. Moreover, coworking places also help in decentralizing the office and reducing long-term lease commitments, making it an excellent option for corporates.

Stats favouring the business of coworking

According to a report by Cushman & Wakefield, the coworking operators expanded their portfolio aggressively last year and took 21 percent more office area on lease adding up to 4.91 million sq.ft. in 2021 in comparison to 4.05 million sq.ft. in 2020 across the top eight cities – Bengaluru, Hyderabad, Pune, Mumbai, Delhi-NCR, Chennai, Kolkata, and Ahmedabad to meet the rising demand for flexible workspaces amid COVID-19 pandemic.

On the other hand, as per JLL’s report, the current market share of flexible workspaces against the total office space market stands at 3 % and given the growing demand of flexible spaces in recent times, this share is expected to reach 4.2 percent by 2023. Owing to several benefits of working in a flexible environment, including shorter lease contracts, lower capital investment, facility management, safety, wellness, security, and low maintenance, more and more companies are choosing coworking over conventional office spaces.

Coworking is the future of workspaces

The style of operating a business has been changed and so does people’s way of working. Employees are seeking flexibility in their regular office regime while employers are also looking for innovative and cost-effective measures of work. The concept of coworking is profiting both of them by giving multiple benefits. Besides reducing the burden of inflexible long-term leases, it also gives better opportunity to connect with like-minded people. Therefore, the future of workspaces seems promising with coworking changing traditional offices into collaborative places.

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