Driven by a thriving start-up ecosystem as well as growing demand from corporates, freelancers and consultants, among others, co-working spaces are growing like never before. So much so that by the end of 2018, as per industry estimates, India’s co-working space is likely to receive $400 million in investments and by 2020, the number of branded co-working spaces is estimated to grow to 400 centers across the nation from less than 100 in 2017.
Industry experts say that co-working is one of the predominant new trends that are having both real-time and long-term impacts on the Indian real estate. The Indian start-up ecosystem is in a boom mode and entrepreneurship is being strongly supported by the government. This has created a huge demand for flexible office spaces which meet the specific needs of start-ups which are beginning from a low capital and manpower base. The Indian business scene is now a hotbed of freelancers and consultants which are strongly supplementing the formal workforces.
Simultaneously, “even large corporates are opting for co-working spaces in some cities, either to cater to specific clients or as incubation centers in new cities which will later lead to expansion into formal office spaces. It, therefore, comes as no surprise that co-working office spaces have become so incredibly popular, and they are now cropping up all over the country – from Tier 1 right through to Tier 2 and Tier 3 cities. These spaces make it possible for start-ups to avail of a high degree of flexibility in their work environments, in terms of locations, facilities and of course costs. There are about 110 formal co-working office space players in the Indian market now,” says Anuj Puri, Chairman, ANAROCK Property Consultants.
Talking about the growth potential of co-working spaces in India, Vineet Taing, President, Vatika Business Centre, one of the largest Indian business centre providers, says, “Co-working spaces will continue to prosper ceaselessly, for long. By 2020, the number of seats in licensed commercial setup will grow by four fold. The growth is favored by rapid urbanization in India, start-ups culture, arrival of MNCs, positive signs by investors and of course, boundless client advantages offered by business centres or co-working spaces. Co-working spaces are just the extension of business centres which are in use since 1995. Business profitability will be commanded by extra services offered via successful integration of business requirements and hospitality services.”
It is expected that both international and domestic co-working operators will establish a presence in the central and suburban districts of main cities in the country. The number of co-working spaces is likely to further increase in Mumbai, Bengaluru and Gurgaon owing to the availability of opportunities for start-ups and adequate infrastructure in those cities.