Future of Co-Working Space Business in India
According to the reports of CBRE and the detailed research and analysis by The Blue Oceans Group, the co-working space industry will increase by 277% by 2023. Currently, tier-1 cities like Delhi, Gurgaon, Mumbai, Bengaluru have the maximum co-working buildings in India. The operation will scale by 25-30% in tier 2 and tier 3 cities of India by 2022, due to increase of demand by 40% of co-working spaces. Also, in tier-2 and three towns, the number of seats is expected to reach 9 Million. From last two years, the idea of flexible workspaces has undergone massively, especially for startups and small-medium enterprises.
In one recent survey of JLL, which was conducted amongst top service providers shows the trend that the mainstream of corporates are biggest clients and drivers of Co-Working Spaces and Startups and SMEs further follow it. Around 45% of the business opportunities for co-working spaces are lying in big corporates, and large firms, 30% by individual professionals, freelancers and SMEs and rest startups drive 25 % of co-working space industry.
WeWork is the first co-working space giant who brings this trend in India a few years back, and it hold co-working industry. Nowadays, the co-working spaces are the benchmark from luminous paintings to coffee vending machines. Approximately, more than 10% of the offices in India are co-working spaces, and the number is expected to rise to 25% by 2023. In India, there is a growth and upsurge of 70% in each quarter from 2019. People are eagerly waiting for the IPO to hold some share in this floating market trend.
Future Trend of Co-Working Spaces are Going to be:
There are other various reasons why co-working business model will sustain and is going to be the future of workspaces in India. There is a trend and spirit of being an entrepreneur, and everyone wants to be master of their thought and destiny. People don’t want to live stereotype thinking by being a slave for a company in fixed hours. People prefer to do experiments. They are doing what they feel like doing. The idea of being an entrepreneur is seeping into Tier-2 and Tier-3 cities. Because of such trend, the market is expected to grow to 9 Million seats by 2022.
Why are People Choosing Co-Working Space for their Ventures:
- Cost Optimisation, Effectiveness and Money Saving:
- No headache, planning and chaos for making own offices.
- No Bureaucratic Rep Tape in finalising location for workspace.
- No paperwork and legal formalities.
- 100% free hustle from electricity connections, bill and other stuffs.
- No corruption.
- Cost-saving in total operational and functional cots of entire office building.
- You can expand your business in any city or country without wasting time and investing huge money.
- Convenient for all type of businesses. You can choose options for Built-to-Suit desks, Private offices, Dedicated Desk, Hot Desk and Virtual Offices.
- Expansion of Business on Daily Basis:
Co-working spaces are based on the model of subscription. If you get access to any building, then you can sit in any of their building in the world. Also, if you want to expand your business globally or in any specific country in various cities, you are authorised to get the access.
- Friendly Community and Profession Ecosystem:
In Co-working spaces, an entrepreneur get the immense opportunity for “Networking and Collaborative” to grow and run his businesses. Also, they get international talent to enhance and sustain their businesses.
The community of like-minded people from various industries and different sector gets the complete exposure. People are doing experiments and implementing their life-changing ideas under one roof. A lot of innovations in the field of technology, healthcare, real estate, BFSI, automotive and the like happens. Some frugal innovations also happens which transforms the society and their living as a whole.
- Rise in “Work Near Home” Trend:
To work in Co-working spaces are hassle-free way for an enterprise to outsource the designing, building and managing of their “own” office space, which allow them to concentrate on growing and running their businesses, not their office.
Often, the collaboration also happens between the co-working space provider and the clients sitting within through retailing and sampling of products and services. The clients get real-time feedback from the broader community and opportunity to test the market with varied demographics.
- Loads of Benefits and Amenities:
The co-working spaces are excellent in providing services and amenities. Any co-working space provides latest IT Infrastructure, 24*7 latest security, well-equipped technology and high-speed internet, ecosystem and community of experts and entrepreneurs, basic workplace amenities such as unlimited cold/hot filtered water, fruit water, coffee, tea and milk. For community engagements and interaction to build a strong ecosystem and for knowledge transfer, it organises events, activities and recreational activities.
- Rapid Rise in Trend:
The co-working spaces is helping startups, SMEs and corporates to form an exclusive ecosystem of like-minded people, and the trend has undertaken the Indian business scenario. In many reports and researches, there is a clear projection that more than 50% of the global workforce will be working and using the services of co-working and shared offices by 2023.
- Employee Satisfaction:
The culture and working style in co-working spaces are far better than working in conventional and stereotype company setups. In co-working spaces, people interact, get the exposure of various dimensions of businesses and work freely. After being tired, irritated or frustrated, they take breaks in between to relax their mind and then again work. In co-working spaces, an employee is not always under the surveillance camera of the boss.
Also, working hours are flexible as well. It is not required to come at sharp 9, make your entry and leave by 6,7 or 8 pm; else there will be the deduction of half-day or full-day. An employee, professional or working person get access to building for 24*7. He or she can come cany time and complete his work.
Future growth of Co-Working space business is 3X by 2023. It has a massive growth and opportunity. Though real-estate is still reviving, but the growth of co-working business is magnificent and phenomenal. Co-working has now established itself as a fundamental part of the CRE leasing activity and a full-fledged sector in its own right, giving tough competition to conventional office spaces.
With n number of benefits, it is offering many great things to various set of people under one roof. The kind of growth it has; we should not surprise that the co-working ecosystem is growing exponentially with no signs of slowing down anytime soon. Many Indian companies such as Corporates, Startups, SMEs will aggressively expand across the country.
The landscape is now composed by over 100 companies in the country and is estimated that the overall number of spaces will more than double over the next two years, pushed both by independent owners and larger corporate projects.