Coworking unlike a typical office environment is a common shared office space. In comparison to the leasing of a traditional official space it has an advantage of cost savings in an average range of 20- 25 percent in big cities like Delhi (NCR) National Capital region, Bengaluru, Mumbai and Pune. Lets check out the trend in demand for coworking space which is rising at an exponential rate in India.
RISE IN CO-WORKING SPACES
According to a report from property consultancy firm Jones Lang LaSalle, the demand for co-working space is the highest in Mumbai. Furthermore, by the coming year 2018, the co-working sector is expected to earn $400 Million in investments, it said. The sector will grow by 40-50 percent to expand over 1 million square feet.
With the continuous rise in the rental offices for business districts across the country. The total area leased by co-working operators in the big cities could potentially stand at 7-9 Million square feet by the year 2020. Study says. Currently, the potential market size for co-working sectors across the country stands in the range of 12-16 Million. With six big cities like Delhi NCR, Bengaluru, Mumbai, Pune, Chennai and Hyderabad – approximately account for the 5 million of this potential.
The study also says that, Mumbai seems to offer the highest potential in the business with a dominant target of over a million people which is closely followed by NCR. Furthermore, close to half-a-million of demands comes from the three main southern cities of Chennai, Bengaluru and Hyderabad, along with Pune. Most of the demands are from large corporate enterprises (around 70 percent) which is followed by emerging businesses (20 percent). Apart from that the rest are the result of demands from start-ups and freelancers.