Co-working spaces are growing even as start-ups increasing fail in India
In 2016, the information technology (IT) industry represented around 58% of the total office demand in India and 41.6 million sq ft of office space was leased in top nine cities.
With millennials representing the largest generation in the workforce and an unprecedented focus on new workplace designs, work styles, and work culture; these factors have led to the growth of flexible and specialized workspaces. The coworking industry is mainly dominated by startups followed by media, e-commerce companies and a few corporates and multi-national companies (
Currently, coworking operators have a small footprint in India, but they are slowly carving out a significant space in the real estate industry. Although factors such as flexibility, networking opportunity, and cost-effectiveness will continue to drive demand for coworking spaces, the need for swing spaces, transitional workspaces and office solutions in multiple locations will further fuel the demand for coworking spaces.
ALSO READ: This is what Paytm's new office in Bengaluru looks like
Although major coworking operators leased only 1.2 million sq ft in 2016, which accounted for 3% of the overall leasing volume,
The concentration of coworking spaces is expected to intensify further in
ALSO READ: The tale of Tata Nullore Estate coffee that made it to the Starbucks Reserve in Seattle
Hyderabad may also pick up the pace as companies such as
ALSO READ: KFC is giving you a custom made toy version with your meal
Coworking spaces are improving collaboration and stress-free working environment which helps develop an efficient and a “happy”, workforce. Not just the international operators, now the domestic players, are taking the concept to the next level as well.