The concept of coworking is becoming more well-known in India. With the economy growing big and small, entrepreneurs are looking to move away from the traditional office environment and cut expenses by moving to coworking and shared office spaces.
Coworking spaces provide all the amenities needed (sometimes and sometimes) and create an atmosphere of belonging, typically lacking in traditional office spaces.
The rise of coworking spaces is not something new that has come out of the Pandemic. Still, it was already famous for freelancers, digital nomad entrepreneurs, startups, and many other businesses of all sizes and sizes.
Coworking spaces provide a myriad of advantages to their customers, including the ability to participate in an extensive ecosystem and have the flexibility of costs and time, as well as an excellent platform for building professional opportunities through networking.
The Growth of the Coworking Spaces-
Potential Market Size
In the aftermath of the Pandemic, hybrid workplaces will be popular because they will prevent those from taking out loans to purchase office space or signing complicated long-term lease agreements.
Owners of coworking spaces need to ensure that they offer clean and modern coworking areas that can be sustainable for the long haul.
Owners will be looking to use digital tools to increase the capacity of operations. It is anticipated that coworking spaces will include more than 4,993,910 users by 2024 worldwide.
Coworking & Pandemic
Most companies seek flexibility and affordability in the aftermath of a pandemic. Remote work has affected the efficiency of many employees. The best solution to this issue is coworking spaces.
Coworking spaces, which suffered a decline because of strict lockdowns, are expected to return and expand due to the necessity for flexible working hours and more convenient workplaces close to their homes. In 2021, 23,548 coworking facilities were expected to be operational worldwide.
The popularity of coworking spaces is rising daily, and many new coworking spaces are launched regularly.
If a new trend starts, it takes time to gain momentum and start moving. This is particularly true of collaborative workspaces. Due to the spread of the disease, the workplace is full of uncertainty about the workspaces.
However, with more firms embracing hybrid working and exploring remote work options, coworking spaces and the associated industry have seen a rise in popularity.
With businesses embracing more permanent remote work positions, these spaces have now been integrated into their strategies for real estate.
This isn’t only the corporate aspect contributing to the growing coworking space demand, but the interest is also growing in the property industry and among investors.
Growth & Evolution of Coworking
It is the fact that the Indian economy is undergoing the rise, and the need for businesses has never been higher due to this increase in business demands and the associated challenges for small companies.
The search for larger spaces that are safe and affordable and have the right resources to support growth are top priorities. Offices are becoming crowded, and rents are soaring.
Thus startups are embracing coworking spaces as it provides the freedom to concentrate on their work, opportunities to network with others who are passionate about the same position, and high-speed internet at a cost-effective price.
The cost of membership is much less than that of running an office.
Let’s look at the development of spaces for coworking in India into three distinct segments. In the pre-Pandemic, During-Pandemic and prospects for the coworking industry in India.
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Startups and large corporations discovered the benefits of coworking spaces due to their practicality, flexibility, and scalability. Businesses and multinationals started using coworking spaces instead of traditional office spaces due to the many advantages.
One of the main motives behind this is access to efficiently managed office space and the top business amenities that go with it.
The coworking space in the country occupied approximately 6.9 million square feet. Based on Colliers International research, flexible workspace operators leased more than 7 million square feet in 2018, representing 14% of the commercial spaces hired. The Indian market is believed to be able to offer startups, SMEs, and other companies between 12 and 16 million seats in coworking spaces.
The COVID-19 Pandemic was close to destroying the demand for coworking in 2020. It was the one that took on the burden of social distancing standards because it impacted the financial viability of coworking companies because coworking businesses thrive off social interaction.
Plans for the expansion of different coworking companies were cancelled and put off. The bright side was how the coworking industry grew to deal with the current crisis.
The outbreak and lockdown have changed how people work, causing workers to find workspaces close to their homes. Flexibility has become the most widely employed term, ranging from flexibility in working hours to shifts that can be arranged.
Coworking spaces have bridged the gap between what people expect and what happens. Businesses with plans to expand are also considering coworking spaces as a cost-effective and affordable option since they can grow their teams and businesses when needed.
Uncertainty over the spread of the virus has hindered the anticipated growth strategy for the commercial office market in 2020. But, experts believe that coworking will account for 10% of the demand for workspaces between 2022-2023.
The future of coworking in India has a bright future. Businesses have profited from the variety of services provided by coworking spaces, particularly during the difficult periods caused by the Pandemic. We can expect a steady increase in growth over the years to come.
Let’s talk about figures, According to an analysis conducted recently. Coworking is a significant part of spaces in office space, standing at 3 percent, and is predicted to grow to 4.2 percent in 2023. In 2023, by the time the survey is over, the coworking market will increase by another fifty million square feet of area. This research suggests that professionals prefer working in coworking spaces as they have access to a workplace and culture that keeps them interested and increases their efficiency overall.
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What is the reason coworking offices are in high demand?
The demand for coworking space is increasing day by day around the world. Based on research, coworking office spaces are predicted to increase to 41,975 by the time the year 2024 comes to an end. The massive increase in coworking spaces stems from the numerous benefits of this green alternative to traditional workplaces.
Startups are businesses built from scratch. With little resources and the fear of failing at every turn, it is crucial for business owners and other professionals to search for viable and cost-effective alternatives to nearly every service they can get.
The number of coworking spaces has been steadily increasing, and, as a growing country, we have adopted the idea of coworking spaces. Coworking spaces have transformed the work environment and are set to remain.