Aug 28, 2020
Over the last six months, we have seen a significant impact on the global economy and business norms due to…
Over the last few years, the MNCs which has been operating in India as well as entering the country to set up operations prefer to opt for serviced offices in India due to the long list of facilities and flexibilities attached to them. The trend of serviced and virtual offices started in India way back in the year 2005 and since then there have been several national and international players offering serviced office solutions in India. Way back in the period in the years 2005, 2006 and 2007, the real estate market in India had witnessed a considerable upswing. Thus, it had become really expensive to set up independent offices for the MNCs entering the Indian market. The Indian real estate marketed also to undergo a transformation over the course of time as the smaller offices are presently not very much available. Thus, the MNCs is just entering the Indian market and also the smaller businesses that do not need huge offices are increasingly adopting serviced offices. The demand for the furnished offices has witnessed a consistently high demand in the last one decade. The trends in India reveal that the serviced offices are not only growing manifold in the metropolitan cities, but also in the smaller cities as well. There are several serviced office providers which are providing the fully furnished office spaces in Delhi, Mumbai, Bangalore, Gurgaon, Chennai, Hyderabad, Kolkata, Nagpur & Pune.
Driving forces behind the increasing demand for serviced offices
The Indian economy is rapidly growing and there are increased business-friendly government policies that have attracted several MNCs to open offices in India and explore the huge Indian market. Also, the increasing prices and rents of the real estate have enticed the MNCs to opt for serviced offices which provide unmatched facilities as well as economical at the same time. When it comes to the concept of serviced offices, they are fully furnished with all the modern amenities, flexible to be rented and very cost-effective. All the administrative duties are being taken care of by the serviced office space providers and thus the corporate operating from these offices can very well focus on their core business.
Packaged services are convenient and cost-effective
The serviced offices are akin to the traditional offices, albeit that the members do not have to indulge themselves in the staffing, furnishing, installation & maintenance of the different facilities. A dedicated team of customer service professionals look after and maintain all the required facilities. The size & services of the serviced offices are designed in such a manner that those suits the tenants’ budget and needs most of the times. Clients have the options of taking a look and selecting from the needed facilities from the variety of the facilities/services available in the state-of-art offices. The services which you can choose from including the administrative, secretarial, communication requirements, pantry services, conference/meeting rooms etc. The clients are demanding the best and smart deals in order to accrue the maximum benefits at the most cost-effective budget. Thus, the MNCs are now on a lookout for the best and innovative options when it comes to the serviced office spaces in India.
Gains reaped from the serviced offices
The serviced offices have proved to be an absolutely excellent option for the MNCs and also for the smaller businesses. This is a gateway to starting a business in a completely furnished office and that also without financially committing for the physical office space. The best part is that these offices operate in ‘pay per use’ basis. There are several advantages like instant availability, simple agreements, lease periods which are absolutely short & flexibilities in expanding gradually as per the demands of the businesses operating from the serviced office spaces.
The savings on the operational costs vary between 20-30 percent by opting for the serviced offices and this depends largely on the period of the operations, the setup’s size, the services offered by the office provider and the scalability. The serviced offices, with prestigious business addresses. were initially a vote among the MNCs but the same is trending among the Indian companies as well.
The impact of the booming serviced office industry in the overall real estate market in India
The trending of the serviced offices in India has turned the market for the conventional and smaller offices relatively much more competitive. The serviced offices are also giving a steep competition to the hotels which provide the state-of-art business center services. The present real estate scenario reveals that the conventional office providers are majorly focused on the clients which only require large offices.
So, the above facts very well depict the reasons and impact of the booming of the serviced offices in India.
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