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As part of our research study, we decided to discover the sustainability of co-working spaces in our country through a secondary data mining.
We found that coworking is here to stay and there's unbridled potential for the sector to grow exponentially in coming years.
India is a land of opportunity. It is home to 1.3 billion people, with strong economic fundamentals, growing economy, and a thriving ecosystem for startups. This makes it a critical market for coworking.
Coworking in India is thriving and is the way forward when it comes to independent working. It has kindled a culture of entrepreneurship in India and is providing much needed space, resources and support to potential entrepreneurs.
The flexibility of the coworking space comes as a relief for many people as the workplace provides a variety of services, including office space, networking events, and equipment.
Even the government of India has been trying to push people into coworking spaces as it can help with the growth of the economy.
Our data revealed some very interesting (and surprising) insights.
Here is a Summary of Our Key Findings:
- 1The co-working industry is expected to reach a valuation of $2.2 billion by 2022.
- 2India's co-working space market is all set to pass 50 million square ft by 2023.
- 3The impact of COVID-19 was strongest in Q2 2020, when leads and inquiries fell 54%, and started recovering thereafter.
- 4In 2020, 75,000 seats in flexible spaces were leased in India..
We have detailed data and information of our findings below.
1. Potential Market Size
In the post-pandemic situation, hybrid workplace setups will be in demand because they will save people from taking loans to buy an office or getting into complicated, long term lease contracts.
The owners of coworking spaces have to provide clean and technologically advanced coworking spaces, which are sustainable in the long run.
Owners will aim at utilizing digital tools for enhancing operational capacities. It is estimated that the coworking spaces will have over 4,993,910 members by 2024 globally.
2. Market Penetration
The market penetration of coworking spaces is increasing day by day. A lot of new coworking spaces are being added to the market on a daily basis.
Whenever a new movement is started it takes time to pick up momentum and get going. This is especially true for collaborative workspaces. Due to the pandemic, there is a lot of uncertainty that surrounds these workspaces.
However, with many companies preferring hybrid work and considering remote work options, coworking spaces and the associated industry have regained prevalence.
With companies adapting to more permanent remote work roles, such spaces have become a part of their real estate strategies.
It is not just the corporate end which is contributing to the increasing demand for co-work spaces, the interest is budding among property developers and investors as well.
Amy Nelson,founder and CEO, Riveter
People will always need, and will be looking for, a place to connect, find community, and to find a purpose. That’s what brought people to co-working spaces in the first place.
3. Coworking & Pandemic
Most organizations are now looking for affordability and flexibility in the post pandemic situation. Remote working has affected the productivity of many employees.
The single most effective solution to deal with this problem are coworking spaces.
Thus, coworking spaces which had a setback due to strict lockdowns, are all set to re-emerge and grow, given the need for flexible hours and workplaces closer to homes. In 2021, about 23,548 coworking spaces are set to function globally.
4. Growth & Evolution of Coworking
The Indian economy is on a high growth rate and the rush for business has never been greater. With this upsurge in business needs, there are associated challenges for small businesses.
Finding larger spaces, which are affordable and secure, the right resources for growth are their priorities. Offices are getting overcrowded and rents are skyrocketing.
Hence, startups are opting for coworking space as it provides the environment to focus on work, networking opportunities with people who are passionate about similar work, and high-speed internet, all while being cost-effective.
Their membership costs much lower than the operational costs of an office.
Jaswinder Singh Tiwana,Starthub nation Co-founder
It is not just about offering a workstation and an internet connection. The conventional system of renting an entire office and locking in the capital is phasing out. Increasing real estate prices have spurred the demand for collaborative and coworking workspaces.”
Ramesh Nair,JLL India Country Head and CEO
Future of co-working will be bright. Today a lot of companies and enterprises want flexibility. Lot of corporates don't want to make capital expenditure on office interiors and they are increasingly opting for co-working spaces,
The evolution of coworking spaces in India will witness collaborative work culture as a boon for businesses to gain traction and faster growth.
With the rise of coworking spaces, the traditional workplaces are seeing a change in people’s perception towards work and the way they work.
The coworking sector in India has come a long way from being a niche sector catering to a niche audience to being a sector that has the potential to provide co-working spaces to a majority of blue collar workers in India.
Sources & References:
About The Author
Name: Ishant Sharma
Ishant Sharma is the head content strategist and operation manager with Coworkinger. He has been working closely with co-working spaces since last few years and is the brain behind the latest research and stats on the co-working spaces round the globe. He is passionate about networking and connections and is quite driven toward understanding what brings people to such co-working spaces. You may reach him at firstname.lastname@example.org