The Comeback Story of Coworking Spaces in India

Coworking Spaces in India

The co-working business in India is on a boom again. Vacant office spaces catering to both small businesses and multinational corporations are quickly being occupied. The once-popular co-working sector is heating up again as people return to their previous pattern of working from their office spaces.

During the first quarter of 2023, the western markets of MMR (Mumbai Metropolitan Region) and Pune absorbed around 1.48 million square feet of office space. About a quarter of this space was used by coworking companies, equaling about 0.35 million square feet. 

Facts & Figures

Coworking spaces are becoming more popular among huge corporations and small enterprises alike, according to the most recent statistics from a real estate research agency. Co-working spaces accounted for 27% of the net office absorption in the top 7 cities (including MMR) in Q1 2023, according to the survey. In the first quarter of 2019, its contribution was just 14% of the 9.3 million square feet in net office absorption. 

Reasons for the Upswing

Workers are growing more used to and accepting of the more flexible hybrid work culture. After Covid-19 shook up office plans throughout the nation, there was a significant drop in demand for shared workspaces. The current downward trend has reversed sharply.

The changing job landscape in the IT/ITeS industry is one reason why coworking spaces are becoming more popular.Unlike traditional office spaces, which need lengthy lease commitments and extensive planning before they can be used, flexible office spaces enable businesses to begin operations immediately. Since the epidemic, there has been a dramatic shift in how people see workplaces. The workplace is increasingly seen as an environment that has to be managed well, according to the research.

Because of this need for specialism, the operators of flexible work spaces have emerged to fill the void as leading providers of this kind of service. Due to rising demand from entrepreneurs, freelancers, and established businesses wishing to grow, the number of coworking spaces has exploded in major cities in recent years. Because of the low vacancy rates in Grade A buildings, coworking spaces have become more popular in IT/ITeS hubs such as Bengaluru, Chennai, and Pune.   

The Transition to Satellite workspaces

For the growing coworking industry, the hub-and-spoke layout is ideal. This is due to the fact that coworking spaces are gradually spreading outside of traditional business districts.

Conventional big office layouts are where most businesses operate

Intriguingly, the proliferation of coworking spaces is not limited to traditional central business areas. There may now be a coworking space with 100 desks in your community. The fact that co-working spaces can now be found in unexpected places like shopping centres, hotels, and posh eateries has made them very popular among the younger generation of workers.

Coworking areas may also be found in a number of the larger business parks. This facilitates company continuity and allows more freedom of choice for workers. Since then, flexi office spaces have emerged, marking a new era in the evolution of the workplace. The use of on-demand coworking spaces in neighbourhoods by remote teams or smaller satellite offices is a common practise among many businesses nowadays. This bodes favourably for the shared office space market.

Companies in MMR are focused on coworking spaces since it allows them to grow rapidly while yet maintaining a decentralised structure.

Growth plans

As the way people work undergoes a seismic upheaval, people are becoming more aware of the enormous potential for co-working spaces outside of major areas. Commercial office property developers around the nation should collaborate with these businesses to provide dedicated co-working areas. The future of work may lie in this niche market, which is expected to rise thanks to the ambitions of large companies and the growing interest in this format among occupiers, property owners, and workspace operators.