Coworking spaces, which have been around for a while while not being an entirely novel idea, have just in the most recent few years begun to gain popularity. Despite this, the most recent few years have continued to be difficult. The Indian real estate market, like every other sector of the economy, has been experiencing headwinds, and the coworking market has not been spared of this trend either.
Coworking spaces are starting to attract both large and small businesses now that the restrictions have been loosened and the economy has begun to show signs of improvement. Let’s take a look at the reasons why the trends point to a better year for the industry.
Increased Customer Demand and Favorable Growth
The global market for coworking spaces is predicted to rise from USD 13.61 billion in the year 2021 to USD 16.17 billion in the year 2022, as stated in the report titled “Coworking spaces, Global Market Research,” which was published by Reportlinker. In spite of the fact that the Omicron has had a significant impact on the first three months of the year, this is the case. The survey emphasises that the rebound in demand is related to the incremental adaptations to the new normal as well as the restarting of office activities.
Coworking spaces are becoming increasingly popular among businesses as an alternative to expensive dedicated offices at a time when the global economy is proceeding with cautious confidence. According to the same report, the global market for coworking spaces is expected to expand to USD 30 billion by the year 2026.
According to the findings of a study conducted by a company that specialises in real estate research called Cushman and Wakefield, the Coworking sector in India actively extended its portfolio in the second half of the year 2021. To put this into perspective, the addition of new coworking space in 2021 amounted to 4.91 million square feet, representing an increase of 21 percent over the previous year’s total area. The ball is already rolling, and the groundwork has been laid for substantial growth in the year 2022.
According to JLL’s projections, the amount of space devoted to coworking in India will increase to more than 50 million square feet by the end of the year 2023.
What are the benefits of working in a shared office space?
Although the statistics suggests that traditional office spaces are being phased out in favour of coworking spaces, there are a number of obvious benefits to utilising this market sector, including the following:
When first getting started, new companies typically have little financial resources and do not have the financial capacity to spend money on specialised office space. In circumstances like these, the coworking industry is a godsend. Helping startups by providing them with dedicated space, state-of-the-art facilities, high-speed internet, conference and meeting rooms, convenient locations, flexible payment options, and a business style that doesn’t come with any strings attached is a wonderful benefit. That results in significant cost savings and reduces the inconveniences associated with logistics and capital expenditures.
Coworking spaces are quickly becoming popular not just as a launchpad for new businesses but also as hubs for professional connections. These hotspots of ideas are actively considered by investors, startup founders, and established company personnel for the purpose of brainstorming, and this gives a wonderful opportunity for new bees to network, learn, and expand their business.
In addition, the leading metropolitan areas, including Delhi, Bangalore, Hyderabad, Pune, and Chennai, have begun to provide coworking spaces that cater to every requirement. The headquarters of the most successful brands in this sector have recently been established in these major urban centres. Everyone is getting reasonable possibilities, whether they are looking for a single seat or a huge number of seats for their business. The general revival of the real estate market in India will unquestionably receive a boost from the proliferation of coworking spaces.
The coworking industry is a concept that has matured to the point where it is ready for prime time. In spite of difficulties that may arise in the near future because of the coronavirus, the industry of coworking spaces is well positioned for growth of at least 10 percent by the year 2023.