Momentum gained by co-working space likely to continue in 2018: study

The momentum gained by co-working spaces in 2017 is likely to continue this year as well as large corporates look […]

   

The momentum gained by co-working spaces in 2017 is likely to continue this year as well as large corporates look at consolidating businesses to maximise their productivity, says experts. Co-working, also known as alternative workspaces, is recognised as a style of working as well as refers to the physical space where such a sharing community exists. This concept is not new, but what is exciting about it is the tremendous growth it has seen around the globe in the past several years as it is essentially the private sector’s response to meet today’s activity-based work requirements. According to a study by property consultant Jones lang LaSalle, co-working is expected to receive investments worth USD 400 million by 2018. The potential market size for the segment across the country, currently, stands in the range of 12-16 million seats. “The demand for co-working spaces is no longer only limited to freelancers or start-up employees. The staff at small emerging businesses as well as large corporate offices are also looking to co-working spaces to maximise their productivity,” JLL India CEO and country head Ramesh Nair said. While freelancers are primarily focussed on the cost factor, start-ups and small and medium-sized enterprises (SMEs) focus on cost as well as infrastructure. For large corporate firms, on the other hand, travel convenience is a high priority, and hence the prime office location is important as is infrastructure, he said. Knight Frank India chief economist and national research director Samantak Das said that co-working space is witnessing an increasing momentum as seen in not just the volumes of space taken up but also the diversity of players that are now queueing up to serve occupiers in this quality-starved office space market.
ALSO READ  MSME ministry plans to create 'super premium' segment for khadi
“In 2018, the shrinking availability of quality-leased office assets coupled with yields reaching historic lows will push investors to look at alternative segments like retail and warehousing. On the other hand, signing built to suit deals will become imminent for office occupiers,” he said. Realty services provider SILA founder and managing director Sahil Vora said that co-working spaces have led to a significant supply in many micro markets and more planned for 2018. “In the next couple years, we expect few large players to dominate and consolidate each market, which may lead to a painful exit for smaller players. The increased competition may also squeeze margins until the sector consolidates,” he added.

Trending

MSMEs

GeM has processed orders worth ₹ 40,000 cr in GMV in last 3 years, 50% transacted by MSMEs

Day-after-Piyush Goyal snub-Jeff-Bezos

Day after Piyush Goyal snub, Amazon commits to create one million new jobs in India by 2025

Amazon's-$1-bn-investment-in-India-no-big-favour--Minister-of-Commerce-&-Industry

Amazon’s $1 bn investment in India no big favour: Piyush Goyal, Commerce & Industry Minister

Jeff Bezos India visit

Amazon CEO, Jeff Bezos bets on Indian century, invests $1 bn digitizing MSMEs

MSME loans

Piyush Goyal: CGTMSE, SIDBI to set up framework for faster processing of SME loans

GST

Nirmala Sitharaman: GST to be further simplified for traders

UK Sinha committee

Government invites stakeholder’s suggestion on National Technology Mission for MSMEs

Delhi-NCR-the-largest-start-up-ecosystem-in-India,-surpasses-Bangalore

Delhi-NCR the largest start-up ecosystem in India, surpasses Bangalore

Premium Organic Soaps- Contribution to the Community

Anant-Nahata

Public charging infrastructure will be key to electric vehicle success in India: Anant Nahata, MD, Exicom 

MSME payments

Startups, MSMEs request for timely payments from government and corporates

Ashok-Prusty

Indian EV battery industry still searching for commercial battery technology: Ashok Kumar Prusty, Bry-Air