With the growth of the startup ecosystem in India, coworking spaces have also been witnessing an acceptance and preference like never before. With every passing year, there has only been an increase in demand for these spaces and this is why we see new coworking space providers mushrooming very frequently. The coworking industry has gained a pace for three major reasons:
- It saves time and has a lower rate of maintenance.
- Provides a flexible work environment
- The community of like-minded people where everyone works together yet independently.
The revenue model of the shared office spaces is very simple. They either charge as per the chosen membership plan or according to the time. The price varies from location to location and provider to provider. For this model is so basic and easy to understand, it’s more comfortable for members to enrol in a managed office space than hunting for a traditional office and spending a lot of money.
Is There Any Future Of Coworking Spaces In India?
The way people are shifting from the boring traditional offices to the modern shared spaces to enjoy a creative and fun work environment, these types of workplaces will only bring people together to form a community. The managed office spaces facilitate you in forming new and fruitful business networks and quality contacts that prove of great use to the early startups.
The cities that are experiencing the rise of technical and internet based startups like Delhi, Hyderabad, Bangalore, Mumbai and Gurgaon have a high demand for these collaborative spaces where the entrepreneurs can thrive.
The industry has caught the eyes of many investors who see these space providers as a great investment opportunity because of the non-stop client base they have. The investors, incubators and venture capitalists are willing to put their money or even acquire many of the coworking spaces just to be in the profitable side of the market.
The real estate owners with their conventional offices are now converting their traditional workspaces into the modern, vibrant and young shared office spaces so that the market who’s ditching this expensive option can come back to them in this way.
Coworking is not just a medium for making money to those who have already been the managed space provider but anyone who can invest their money or convert their property into another well-structured fully- furnished office space.
The above points are strong enough to support the argument of whether or not there is a future of coworking spaces in India in 2020 or in the coming years.
The real estate sector has enjoyed its monopoly with a constant rise and shift in the prices. With the increase in the number of the entrepreneurs, there will always be a demand for the office spaces and that’s an opportunity every big, medium and small real estate dealer looks for to empty the pockets of their customers.
It was only after the introduction of the coworking spaces that the real-estate prospects have started turning towards a very affordable and comfortable option that would not just save their hard earned money and future loans but also offer a range of support services in return.
Starting with a few percent that the coworking spaces had a share in the total office spaces in India and today, it is growing to almost double every couple of years. The coworking industry is expected to take up 25% share in the total number of offices in the county in the next few years. Started as a freelancer and startup opportunity is now developed into a feasible and much demanded real-estate business. The managed office spaces are gaining momentum at a rapid pace and the experts predict only an upsurge.
Future Of Coworking Spaces With Some Trends In The Industry
With the growing number of startups in the country, there is a growing requirement for the office space that would fit all the types and sizes of the growing ventures. Tech and ecommerce companies are emerging in the Indian market maturing the national startup ecosystem.
Mergers & Acquisitions
It’s very common in businesses across industries to merge and acquire for adding up the strength and power. This is a way of getting you roots deeper into the market. Coworking industry is no different. There are bigger companies who merge with or acquire the smaller ones. This is done not just to be stronger but in a way, to help the coworking ecosystem.
Since there is a free entry and exit in the shared space industry, the new-comers look at the already established space providers and put all their efforts and money to build the same spaces like them. But sometimes, due to reasons like lack of experience, they fail. For the hard work of those space providers shall not go in vain, the bigger ones overtake them in exchange for the money that both the parties stand at a win-win situation. This would be seen a lot in the coming years.
More niche spaces
Industry specific coworking spaces are another thing of the future. There are a few of them present but in some time, you’ll find more of them sprouting. Focusing on specific communities such as food, wellness, women-entrepreneurs and the like, they will provide industry related events and workshops.
This will help the budding business owners become experts and provide equal opportunities to the single freelancers to get better at what they do. It’s the experience that they’ll enjoy in the coworking spaces that is going to increase the demand for them in future.
Customer Delight & Hospitality
One of the main reasons why the managed office spaces is that they don’t just provide their clients with a workspace. Apart from the dingy and boring offices, the clients are now provided with happy spaces where the members love to come and work. Customer-centric is the new basic and hospitality is the new necessity. The existence of a shared space provider depends on the services and the additional provisions that make their work-life better.
Customers are smart and the space providers are numerous in competition. It won’t take the clients long to switch the workspace provider and to retain them, the shared spaces will do all that they can to not lose any of their members. It’s the occupancy that proves their success rate, after all.
Large enterprises are increasing
The future of coworking spaces cannot just depend on the startups, freelancers and SMEs. More than today, the coming years would witness a large presence of the multinational corporations’ units, large companies and established enterprises.
The bigger businesses who have a lot to look after would happily wish to shift to the managed office spaces that can look after all the necessary requirements that would support their businesses. Quality of the property, quality of the services and the quality of work environment that a fully-furnished office can provide can’t be experienced in a brand’s dedicated office. These places have everything that a long-term office space might need to run.
Amenities for the new generation
Gone are the days when only an empty office would suffice in exchange for the huge amount paid for it. The owner or tenant would get only the real estate property without any other facility. All the furniture, office equipment, utility bills, fittings, repairs and instalments are on the one who paid for the office space.
This was a traditional office with conventional offerings. But unlike that, the modern shared offices give you a whole lot of services against the membership fees you pay. Called as managed office spaces, they manage the entire office space and the requirements on their own and you just have to focus on work. New generation. New services.
Spreading in all the cities
It was some time back when the coworking spaces were only limited to the huge cities where there was a defined and sure scope of business. Today, they are spreading in almost all the cities (tier 1 and tier 2) catering to a wide spread audience like never before.
Not just the new shared space providers but also the established coworking giants are now capturing the smaller markets with their new offices across India. What was once only confined to the metro cities is now also present in Kochi, Surat, Kota, Udaipur, Jaipur etc. the demand for the managed office spaces is increasing frequently and the providers are ready to take advantage of this.
The future of coworking spaces is bright because they are any day a better real estate option than a traditional space that costs you a fortune. Also, with the lowest margins in the business, the office space providers don’t make a huge money from the membership fee they charge and this is always a fair deal. The revenue model is built only on the small but fair revenue. Since all the factors point in the favour of the managed office spaces, it positively hints towards the bright future of this industry in the current and the coming years.