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Coworking – Transforming Indian Workplaces

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2020 suggests a new dawn in the era of workplace strategies and office spaces.

The segment will grow further and witness robust demand drivers and a strong supply momentum fueled by the aggressive expansion of many coworking players. 

2019 witnessed coworking spaces accounting for almost 13% of the total office space segment from a smaller 5% in 2017. The need to cater to the workspace preferences of emerging millennial workforce, constantly introducing innovative workplace practices, collaborative technologies, flexibility and ease of operations has made coworking the first choice for many start-ups, mid-sized companies and even the Fortune 500 corporates. 

Coworking spaces revolutionizing commercial real estate 

Shared working spaces are set on the ideals of the professional who is not only looking for a place to plug his laptop but ensures that he is optimizing his work with round-the-clock amenities minus the copious lease amount. In here, the millennial worker can choose quality over quantity and work in a collaborative environment rather than as a lone wolf.  This relatability often brings in more traction, which is precisely why there is a chance that occupancy levels might intensify to 8 to 9 million sq. ft. by 2020. 

Today, India is one of the biggest flexible space markets in APAC and will continue to grow into the Tier -2 cities such as Goa, Chandigarh, Lucknow and Jaipur as well. Coworking spaces are not only gaining strong foothold across the country but have become the go-to option for many employees as well as employers. 

Coworking players are entering into different business models to partner with landlords to maximize profits and minimize risk.  Coworking has garnered positive attention from large investors that is wielding a positive influence on the scaling up strategy, technological augmentations, upgradation of facilities & amenities as well as reaching out to more enterprise clients thereby emerging as a critical element of any corporate’s real estate strategy. In fact, from 0.2 million sq. feet in 2014, the market is poised to experience a lease surge up to 10 million sq. ft. in 2020. This is expected to grow three times over the next 3-5 years where the coworking industry will play an integral role in the growth of the commercial real estate leasing activity.

According to JLL’s report on Emerging Trends in India’s office sector, 1.1 million sq. ft. to 3.4 million sq. ft. has been taken up by coworking spaces in seven major cities over a period of one year. Moreover, the number is expected to grow drastically in few years. Customization, collaboration, flexibility and Grade A amenities at affordable prices are few aspects that make coworking the fastest growing segment in commercial real estate and will continue to be the game changer for CRE business in India. 

ALSO READ: What the 2020 Budget means for the Commercial Realty and Serviced Office Sector

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1 Comment

1 Comment

  1. Suraj kumar

    April 22, 2020 at 11:35 am

    thanks for your post, i have found it very usefull or informable i also found same subject blog on a website of website designer company in patna

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