Indian real estate sector is likely to see a growth in the co-working spaces, with increasing demand from freelancers, cooperates, consultants, among others. Industrial experts are estimating that by the end of 2018, co-working spaces in India will receive $400 million in investments. Moreover, from less than 100 in 2017, branded co-working spaces are expected to grow to 400 centers across the nation.
The experts also claim that these spaces are one of the new predominant trends that are having and likely to have long-term impact on the real estate sector of India. Start-ups and entrepreneurship is at a boom in India and is being strongly supported by the government. This has initiated a huge demand in these flexible office spaces to meet the specific needs of the start-ups with low capital and manpower. Today, business in India has become a breeding ground for the professionals and freelancers, which are increasing the need of these formal workforces.
Anuj Puri, Chairman, ANAROCK Property Consultants says, “In some cities, even large corporates are opting for co-working spaces, to fulfil the specific needs of clients or as incubation centers in new cities that will later lead to an expansion into formal office spaces. Therefore, it comes as no surprise that co-working office spaces have become incredibly popular and that 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.”
Looking at the growth potential of co-working spaces in India, Vineet Taing also put his views. He is a President at Vatika Business Centre, one of the largest Indian business centre providers. He said, “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 favoured 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.”
Both international as well as domestic co-working operators are expected to establish a presence in the central and suburban districts in main cities of the country. Number of these spaces is likely to increase in Mumbai, Bengaluru and Gurgaon in accordance to the availability of opportunities for start-ups and ample infrastructure in these cities.
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