The latest joint report by JLL-FICCI shows that the co-working sector recorded 12% of the office leasing market in the Q1 of 2019 calendar year that was 8 percent in 2018. Also, the sector acquired 6.9 million sqft of cumulative space since 2017 till Q1 of 2019.
The co-living market in India is expected to grow business of nearly Rs.1 trillion by 2023 with a capacity of 5.7 million beds that number at 3.6 million beds in 2018.
Samantak Das, chief economist and head of Research & REIS, JLL India said that internationally, the evolution of workplaces and human experience made these two a prime sector in Indian real estate business.
Das also said that the change in opinion has also played an important role in the demand as the millennials today’s prefer sharing instead of owning and this is making Co-living a famous concept. Rental income is a smart option for all including corporate occupiers, start-ups, entrepreneurs and millennial.
He further said that both the sectors are expanding themselves in India. The shareholders have resolves the issues like data privacy, change in the approach of property owners and relevant supply in both the sectors.
Sanjay Dutt, chairman, FICCI Real Estate Committee said that the maximum number of working professionals in India is millennial and these people are looking for a different style of working and thus co-working and living spaces are becoming a trend now a days.
The joint report also says that the idea of Co-working is receiving a positive response in the metro cities and the Tier II cities are like Indore, Ahmedabad, Bhubaneshwar, Kochi and Jaipur are also looking at this sector. The minimum cost investment and sharing of amenities are making the concept of Co-living and working popular among the developers.
Juggy Marwaha, executive managing director, JLL India said that the Co-working sector has grown manifold in India and is now expanding itself after making strong footholds. The operators of such establishments are now offering better designs and pricing.
According to the joint report and in comparison to the traditional method of office space leasing, the Co-working concept save a cost of 20-25%. Similarly, the Co-living concept offer returns upto 2 to 4 times higher in comparison to the traditional return of 2-3%.
On a whole, Co-working and living, both are growing as an alternate option in the Indian real estate market.