How to Invest In Co-Working Office Spaces?

There is a new trend in the market where Small and Medium Scale Enterprises are all marching towards investment in co-working office space.

Conventional office space is deemed to be one of the best and pocket-friendly way of having a presence in the business hub.

As an investor, you are likely to prosper and increase your earnings by making investments in co-working office space for rent which currently is booming in the commercial property segment.

Scroll down further to find out what should be the area of focus at the time of making an investment in co-working spaces.


Thorough Market Research:

Your research on the market should be in detail. You need to identify the prime area where co-working spaces are mainly occupied.

What are the benefits associated with it and how would it help you to enhance your investment value. How good would be the return on investment and will it scale up over the period of time.


Identify the Right and Potential Buyers:

Studies reveal that there has been a remarkable increase in the number of self-employed people as freelancers or SMEs who work remotely from across the globe.

Due to budget constraints and low finances, they generally end up landing at co-working spaces. Your investment should be in such a locality that is a corporate hub for all types of business and has room for remote workers.


Does it provide a Homely Atmosphere?:

Everybody wants to have a homely environment at work. Majority of co-working spaces have their offices designed with attractive layouts that excel in comfortable working.

This is an essential part to consider at the time of investment in co-working office space.


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Which Places are in High Demand for Co-working Spaces?:

With the increasing work-at-home population the demand for co-working office space is also speeding high. Metros and Tier-II cities are witnessing a big footfall from people across the globe for shared workspaces.

They are easy to access and also have the benefit of working together with motivated employees. They also help to wipe out isolation. You should preferably consider these locations.


Other Retail Outlets Should also be Considered:

The mere location should not be the only aspect that one should consider at the time of investing in commercial property.

A good mall with prime restaurants and shopping arcades could also be of help in reaching the right target audience. There could be a probability of customers that would cater to your business amongst the footfalls.


Way forward:

To sum it up the future of the co-working market is looking quite bright in the upcoming years. Initially try to invest in properties that are rented out by organizations as a safe bet to yield good returns.

One should also keep in mind that not all co-working investments are worth in taking the risk.


Do your homework well and look out for properties that have co-working spaces located in prime business zones of the city as they are easy for the people to commute and have the accessibility of almost every minute thing that is required to run a steady and sound business.

Key Trends Shaping the Commercial Office Space Market in 2019-20

The commercial office space market in India is witnessing a humongous change in 2019.


The demand for commercial office space properties is mounting up day by day. There is a huge potential growth in end users and investors alike.


After all, it is deemed to be one the biggest destination for investments in India not only for the Indians but for the NRIs as well. Today everyone is extremely keen to ace up their investments in the commercial office space market investing sector.

Thanks to both Tier 1 and Tier 2 cities that are absorbing the ever-changing corporate environment. The demand for bigger as well as better office spaces by national and multinational companies are swiftly surging in these areas.

Listed here below are some trends that are fruitful in shaping the commercial office space market in 2019:


1. Adoption of Co-working culture by Multinationals and Global Players:

Gone are the days when co-working or shared workspaces were only looked upon by the start-ups and SMEs. Today there are N numbers of multinationals and global players that are showing increased interest in co-working and shared office spaces.

The perks of superior infrastructure, flexible work environment are playing wonders. Moreover, it also has the advantage of reducing their operational costs. Due this many unused commercial spaces are now seeing occupancy. The value of the property is also escalating.


2. Role of Technology:

The latest technology-powered office solutions are the game changer for the Indian corporate real estate sector. This new trend of having robot receptionists, wireless AV systems, parking services based on apps, intuitive meeting rooms are driving the future growth of commercial estate in India. These technological innovations are propelling the corporate world.


3. Buying is more favorable as against Leasing:

The past few years have witnessed many companies opting to buy commercial properties in Tier I and Tier II cities instead of leasing them. Buying is a one-time investment and helps in building long term asset. Companies Prefer to Merge with Co-working Brands

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Partnering with co-working brands gives an opportunity to the occupants to enjoy a vibrant work environment and get agile workplaces. It also turns out to be a good networking source. The terms are very cost-effective.


4. Space Efficiency is helping to Boost Operational Efficiency:

These days the corporate giants are combining their several office spaces into one.
They want their space to be resourceful. This helps them to save overhead costs. As a result, now there is a requirement of bigger office spaces to accommodate staff members from multiple office locations.


5. The Well Being Aspect for Employees is moving Fast:

Corporate giants have started giving due importance to “Wellness”. They want their employees to be sound and healthy. Thus they look forward to only those projects that possess the label of “Well Certified” to ensure the wellness of the occupants.


6. Revision on Lease Period is taking the Tempo High:

The lease period for office spaces has now been extended up to 12 or 15 years as against the earlier term of 9 years. This is enabling the tenants to save on rent and secure occupancy rights.


Studies reveal that last year in 2018 even Non-IT companies like healthcare, biotech, telecom, consultancy businesses, and others actively showed interest to occupy the commercial office space market in India. It has been observed that Bangalore is the first choice of multinationals. Delhi NCR, Chennai, Hyderabad, Pune, and Ahmedabad are also in the preference list.

Is it wise to Invest in Commercial Property Market in Noida?

Today Noida is the talk of the town when it comes to the best commercial property market.


These days the commercial property market is constantly booming in Noida.


Umpteen reasons that tempt people to consider the option of buying commercial properties in this prime city.
To figure out what is the magnetism funda that is pulling people to park their monies by buying a commercial property in Noida are:


Apt Locality :

The most important aspect to consider while making an investment towards buying a commercial property in Noida is the location factor.

Noida is situated very close to the capital of the nation. One can easily reach to this key city from Delhi. Travel between these two cities is very convenient. Moreover, all the prime areas of Delhi are very much within the reach of Noida.

Traveling to the nearby areas of Noida is hassle-free because expressway and metro help people to get connected with Faridabad, Agra, and Haryana which are again are the hub of business giants.


Handy Resources :

Noida has ample of:

– transport facilities,
– an infinite number of pharmacies at close distances,
– world-class educational institutions,
– big malls,
– luxurious hotels,
– commercial shops,
– good network coverage (mobile as well as internet) and
– uninterrupted electricity

which makes it very convenient for one to settle down here. The residents here are economically sound and can be a future prospect as customers wanting your commercial investment to be theirs. All these facilities are another reason why Noida is termed as a hub for commercial property investment.

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Invest in commercial property in Noida – Bhutani Infra

Well-maintained Infrastructure :

The infrastructure in Noida is planned in such a format that it provides world-class facilities to the end users. The roads and buildings out here are well-built which ensures that Noida’s name falls amongst the top well-planned cities of India.

This city has a great presence of IT firms and MNCs from across the globe. Unlike other cities of Delhi NCR, Noida has very less congestion and more space. This is another major reason why people find it easier to set up their business here.


Pocket-Friendly Options :

There are many affordable options available for one to establish a center for its business in Noida. One can fluently buy a commercial property for office spaces or retail shops out here.

The property rates in Noida are quite cheap as compared to the other cities in Delhi. With each passing day, Noida is witnessing an increasing number of commercial property market investments in the market.


If you intend to buy or rather invest money in commercial property market within a good range then Noida as an option can be considered.

Noida is the upcoming commercial hub close by to Delhi and is comparable in amenities with other cities of Delhi NCR.

Co-working spaces: Changing the shape of commercial real estate

Check out How Co-working spaces change the shape of the commercial real estate market in India:


Summary:

– Co-working spaces are the latest trend in the commercial real estate market in India.


– Developers have now realized the potential of the commercial market and creating co-working space to fulfill the office space requirements of enterprises of all sizes.


– Hence they provide:

1. flexible payment plans,
2. flexible leasing conditions, and
3. appropriate design to cater to professionals.


According to JLL’s report, India’s office sector is evolving. It consistently needs space for commercial operations. New policies, as well, are in favor of the commercial real estate sector. All this has led to more leasing and investor activity.

Co-working spaces are no more just the demand of IT companies but the non-IT companies as well. Whether it is BFSI, telecom, healthcare, biotech, real estate or any consultancy business, each and every kind of organization is filling up office space actively.

The report also states that demand for office space across major seven cities has tripled from 1.1million sq ft. to 3.4 million sq ft. in a period of one year.

Top reasons for the surge in office segment of commercial real estate:


Advent of RERA:
Real Estate Regulatory Authority (RERA) and its regulations along with setting up of Real Estate Investment Trust (REIT) of India are the apparent reasons for the growing trust of companies and layman in the sector.
This has also regained the trust of foreign investors and increased inflows from FDI.


Demand from enterprises of all sizes:
Large and medium-sized companies used to take up the office space until now. But now even small-sized companies have taken up a considerable share of the market. Cost savings is the major factor driving the force.
Presence of co-working space in commercial areas where connectivity with the rest of the city is robust, there is constant infrastructural development going on as well as the companies have the freedom to expand or contract their operations according to their changing business environment.


Effective cost savings:
Another most important factor driving the growth of the office segment in the commercial market is flexible leasing terms offered by developers and landlords.
Co-working spaces providers are moving with the pace of the market and offering functional and effectively designed office spaces with lower deposit requirements, which has led enterprises to plan their finances effectively. Moreover, requirements for meeting rooms, conference halls, cafeterias, open corridors, and pantry are also met like never before.


Expanding businesses across the industries:
As mentioned above, it is not just IT companies filling up the co-working spaces but the enterprises of every segment.
Startups and small-sized companies are definitely in need of flexible working space and flexible payment plans. However, substantial demand is coming from large-sized companies.


Demand for co-working space is also on the upward direction due to its strategic design and amicable office environment. Businesses thrive if the workforce is contented and functioning optimally. Therefore, effective work culture and the environment is a must for every kind and every size of the enterprise.

Using co-working spaces in commercial real estate gives this advantage to occupants along with other day-to-day necessities.