Coworking spaces are becoming more and more popular in India. With a growing economy, entrepreneurs and large enterprises are looking for ways to get out of the traditional office space and save on costs by moving into coworking and shared office spaces. Coworking spaces offer all the necessary amenities (sometimes even more) and provide a sense of community, often lacking in traditional work environments.
The popularity of coworking spaces is not a new development emerging out of Pandemic but was already a popular option among digital nomads, freelancers, startups, and other small & large businesses.
Coworking spaces offer innumerable benefits to their users, few being; getting to be a part of a diverse ecosystem and flexibility in terms of cost and time, and a great platform to build career prospects through networking.
Let us trace the growth of coworking spaces in India into three segments. Pre-Pandemic, During- Pandemic and Future prospects for coworking spaces in India.
Startups and large enterprises realized the potential value of coworking spaces in terms of practicality, scalability and flexibility. MNCs and established businesses started favouring coworking spaces over traditional office spaces because of multiple benefits the former offers. One of the primary reasons for this inclination is the access to effectively managed office spaces and top-class business amenities that come along with it.
The country's coworking spaces covered around 6.9 million square feet. According to Colliers International research, flexible workspace operators leased over 7 million square feet in 2018, accounting for 14% of all leased commercial space. The Indian market was estimated to have the potential to offer start-ups, SMEs, and other enterprises 12-16 million seats in coworking spaces.
COVID-19 pandemic had almost crushed the coworking demand in 2020. It had to bear the brunt of social distancing norms as it affected the profitability of coworking operations since they thrive on social interactions. Expansion plans of various coworking players were shelved or put on hold. But the silver lining was the way the coworking industry evolved itself to manage the crisis.
The pandemic and lockdown have revolutionized the way people work, pushing them to look for workspaces closer to home. Flexibility became the most commonly used term, from flexible work hours to flexible shifts. Coworking spaces managed to fill the gap between expectations and reality. Companies with expansion plans have also begun to see coworking spaces as an affordable and economical option as they can upscale their business and teams as needed.
Pandemic-related uncertainty has hampered the expected growth strategy for commercial office markets for 2020. However, experts predict that coworking will contribute 10% of global demand in workspaces in 2022 and 2023.
The future of the coworking industry in India looks bright. Businesses have benefitted from the range of amenities offered by coworking spaces, especially during trying times caused by the Pandemic. We can expect an upward rise in growth in the following years.
Speaking about numbers, according to a recent survey, the share of coworking spaces in total office spaces is currently at 3% and is expected to rise to 4.2 percent by 2023. By the end of 2023, the coworking space market will grow by another 50 million square feet in terms of total square footage. These findings show that working professionals prefer to work from coworking spaces because they are exposed to an environment and work culture that keeps them engaged and improves their overall efficiency.
In India, the number of coworking spaces has shown a steady increase, and as a developing nation, we have embraced the concept of coworking spaces. Coworking spaces have revolutionized the workplace landscape, and it is here to stay.
At Workafella we offer coworking spaces with a large range of amenities through which your business will be greatly benefitted. Contact our website and explore the varied range of coworking spaces available for you.