Coworking Spaces have brought a wave of change in how India sees startups. These spaces have moved ahead from being just real estate to breeding grounds for startup cultures. These spaces not only provide offices to startups but also give them the sense of encouragement, determination and belonging. Also, with international coworking players like WeWork beginning to launch “WeWork India‘, the sector surely looks promising. However, is coworking business model profitable? Let’s try to answer the question.
Expert Views on coworking business model
According to Mr. Yatin K thakur, Founder of Coworkin and has been running coworking spaces since 5 years and was one of the first few people to setup coworking spaces and physical communities benefitting out of such spaces, coworking spaces can be a source of profit if done right. He further added:
“If well thought out, every business is sustainable. The key stakeholders in case of a Coworking Space are property owners, operators and startups. If each entity gets a certain benefit, the business becomes profitable. Coworking becomes a win-win for everyone if property owners are able to get rental incomes of more than average market prices, operators get a good management & administration fees and startups get an affordable work space at prime locations. CoworkIn works on the same model, where it creates this win win situation for all stakeholders, providing 20-25% more returns to property owners than traditional rent and yet providing the most affordable services at the prime locations of a city for its members.”
Is Coworking a Win-Win for all?
We also spoke to several Coworking owners and concluded that most of them are looking at Coworking as a growing field. The growing number of startups, remote workers, freelancers and small companies are going to increase the scope of coworking industry. Companies are encouraging their employees to work remotely from a coworking space located near their residence, startups are preferring furnished offices and freelancers are getting out of their homes to work from a space that motivates them.
Coworking industry, as Mr. Yatin rightly said is providing benefits to the property owners in this slacking real estate market, creating a business opportunity for the management teams and providing affordable flexible spaces along with community benefits to the coworkers.
The present coworking scenario in India indicates that the industry is bound to grow in the coming years. Who knows, Coworking might replace Cafes tomorrow! Several companies are already going office-less and hiring only remote employees.
What do you guys think? Share your views in the comments below.