Reports say that the leasing of co-working spaces might double in 2017 to reach 1.5 million square feet, as the concept of shared office space is becoming more and more popular in the country. A property consultant firm named CBRE India projected in their report that leased office spaces could reach to 10 million square feet by the end of 2020.
“While demand more than tripled in 2016 to touch 0.7 million sq ft as compared to 2014, this year (2017), leasing is expected to cross 1.5 million sq ft. With the concept of co-working spaces fast catching up in India, leasing is expected to touch 10 million sq ft by 2020,” CBRE said in their report.
As per their study, there are three categories of shared office space, namely traditional business centers, incubators or accelerators, and co-working spaces. Currently there are about 350 co-working space operators in India, spread across 800 locations in the tier 1 and tier 2 cities of the country. The majority of these shared work spaces in the country are located in the tier 1 cities. As per the report, eighty-five percent of the total shared office spaces is located in the tier 1 cities and the rest fifteen percent in the tier 2 cities.
“With Bengaluru, NCR (Delhi, Gurgaon, and Noida) and Mumbai being gateway cities, 75 per cent of the shared office spaces are based in these three locations. Each has more than 100 shared office spaces followed by Hyderabad, Chennai and Pune,” the report says.
The most important benefit of co working space is the cost savings offered by them. These spaces offer up to twenty-five percent cost savings in the metropolitan cities when compared to the conventional office space leasing.
Initially, the co working spaces, especially those co-working spaces in Chennai and other metropolitan cities, offered solutions to start-ups and entrepreneurs, but lately, the concept of shared office and co working space is catching up with the corporate. This is because of the benefits that these spaces offer, such as small capital expenditure requirements, affordability, efficient use of available space, and flexibility to expand or contract at short notices.
Co working culture is gaining momentum in the country and has become a growing trend in office space lease in many of the cities. What’s more, many experts believe that the business is to boom in the near future.