Coworking 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 coworking spaces 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 the 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 the office segment of commercial real estate:
Real Estate Regulatory Authority (RERA) and its regulations along with the setting up of the Real Estate Investment Trust (REIT) of India are the apparent reasons for the growing trust of companies and laymen in the sector.
This has also regained the trust of foreign investors and increased inflows from FDI.
Large and medium-sized companies used to take up 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.
With the presence of coworking spaces 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.
Another important factor driving the growth of the office segment in the commercial market is flexible leasing terms offered by developers and landlords.
Coworking space 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 pantries are also met like never before.
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 coworking space is also in the upward direction due to its strategic design and amicable office environment. Businesses that thrive in the workforce are contented and functioning optimally. Therefore, effective work culture and environment are a must for every kind and every size of enterprise.
Using coworking spaces in commercial real estate gives this advantage to occupants along with other day-to-day necessities.