The coworking industry in India is continually growing with each passing year as the industry continues to climb new peaks. From having close to 20% of overall office space absorption in the country last year to the launch of India’s largest coworking space spread across two lakh square feet to an increasing number of global giants actively picking up large office spaces, the industry is having its dream run.
As the coworking ecosystem grows, the industry is graduating to the next level, offering enhanced spaces equipped with state-of-the-art amenities and allied services to meet the evolving requirements of occupiers. In order to house the growing number of clients, there has been a significant increase in the average space taken up by coworking industry operators across the country. What used to be in the range of 10,000 to 20,000 square feet, the average size of a coworking space today has gone up to 50,000, with some even touching one lakh square feet or more, a testament to the growing adoption of this concept by companies of all shapes and sizes.
This is in direct correlation with the increase in average seats taken up by occupiers across the board including small, medium, and large organizations, indicating growing occupier and investor interest in the sector. Having realized the benefits of low rentals, short-term leasing, no investment in fit-outs, and a host of enabling benefits available in a no-frills manner, companies across have been enhancing their exposure to the coworking industry. This is allowing them to seamlessly expand and consolidate their presence to suit the business requirements which was not possible in a traditional office arrangement.
Handshake with ecosystem partners enables rapid expansion
Having started co-working spaces at renovated office spaces in the unorganized space, the industry today is at the forefront of offering state-of-the-art office spaces with industry-best amenities. This has been made possible due to the extensive collaborations between coworking operators and real estate developers as they are able to have better control of the property design and achieve high rental value. Furthermore, it becomes imperative owing to the fact that an increasing number of large organizations are switching to the shared workspace concept and demand premium quality offerings to attract and retain employees.
Furthermore, the growth and expansion of coworking operators are allowing new-age service providers in the areas of IT services, food and beverage, and concierge services to significantly expand their operations and offer their services at relatively lower costs due to the economies of scale. This creation of a shared value for everyone spells out a positive outlook for the sector as it looks forward to the next phase of rapid growth.