This is obvious that the most crucial benefit of the coworking spaces is the significant savings in the cost. The prospect of cost savings by opting for coworking spaces as compared to the traditional office is considerably high. With the inception of the shared office concept, the popularity of the same has grown with passing time and it is catching up really well in India. The shared office space in India is expected to touch the 10 million square feet in India by 2020. As per the surveys, the demand for the coworking office spaces has tripled in the year 2017 as compared to the demand in the year 2014.

In the present times, the coworking spaces have certainly emerged as a major product when it comes to the office spaces market. These office spaces are a great indicator of the several upcoming demands for the developers and is already acting as a key accelerator for the mid-sized and small businesses which are cautious of the operational costs and do not possess the financial strength which is required to be invested and committed to a long-term office space in the traditional offices. Thus, due to the limited budgets, these organizations are not able to opt for the quality traditional offices for their businesses. In such a scenario, a coworking office space with a prestigious business address and affordable costs is of great use to such companies.

The shared office spaces fall in one of the three major categories- coworking spaces, traditional business centers, and accelerators/incubators. As per the reports obtained from CBRE Research, it has been surveyed that there are around 350 shared offices across India which are spread in more than 800 locations majorly in Tier 1 and Tier 2 cities.

As per the reports, 85% of the shared office spaces in India are located in the Tier 1 cities whereas the remaining 15% of the coworking spaces are present in the Tier 2 cities. NCR (Gurgaon, Noida, and Delhi), Bengaluru and Mumbai are undoubtedly the gateway cities of India and 75% of the shared office spaces are reported to be located in these cities. There are also many shared offices in Chennai, Hyderabad, and Pune. As per the reports from CBRE research, that the ninety percentages of the co-working spaces and business centers are located in tier 1 cities and around half of the accelerators/incubators are located in the tier 2 cities.

This goes without any doubt that the biggest advantage of the shared offices is that there are significant cost savings involved. In the metropolitan cities of India like Delhi, Mumbai, Gurgaon, Bangalore, and Pune, the cost savings by opting for coworking spaces is around 25% as compared to the traditional offices. Also, the coworking spaces are located in prestigious business locations which ensure that the members would enjoy several benefits like a premium image, great connectivity etc. apart from the cost-effectiveness.

India’s office market has witnessed sustained growth in the recent years. This is also deemed to be one of the very dynamic segments in the real estate industry as this segment has been witnessing various advancements. The advancements have been in various ways and are design related, technology-driven and also in terms of workplace strategies. With the entire global economy expanding at a rapid pace and India converting into a hotspot for several strategies of corporate expansion, this is obvious that these concepts of shared and coworking spaces would very quickly pick up the pace. The occupiers’ focus on the business operations over the RE decisions, the increased preference in terms of flexible leasing terms and the acceptance of remote working across various industries are the major factors which are responsible for driving the demand for the coworking office space in the present times as well as in the future.

Coworking office spaces have dominantly grown in Tier 1 metropolitan cities of Delhi, Gurgaon, Mumbai and Bangalore and also there has a considerable growth of the business centers in the smaller cities like Chennai, Pune, Kolkata, and Hyderabad. The Tier 2 cities like Ahmedabad, Kochi, Bhubaneshwar, Chandigarh, Patna etc. are witnessing a considerably high demand for the accelerators/incubators. This is obvious that the 90 percent of the shared office operations across India are being led by the domestic players who are witnessed to offer all the three formats of the sharing office spaces. The international operators are seen to focus majorly on the business centers and coworking spaces. The surveys reveal that there are over 20 international operators which are offering shared office spaces in India and are mainly from USA, APAC, EMEA, and UK.

The projections from the real estate experts reveal that the office rents would continue to move up across the length and breadth of India and the total space leased by the shared office providers in tier 1 and tier 2 cities would touch the 10 million square feet mark by 2020. With the country’s millennial population very mightily continuing to impact the real estate industry, the demand for coworking office spaces would continue to rise because of the unmatched facilities that they provide at affordable costs.

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