The co-working space sector has witnessed a sudden increase in the Indian property market and one of the main reasons behind this escalation is the emergence of start-ups. According to a report approximately 1.2 million sq.ft. space was given on lease in the year 2016. In fact, the rise in demand for the co-working space can be imaged as sometime back there were only 2-3 players in the sector and this number has eventually grown upto 200. The experts estimate that the demand for co-working space will increase upto 8-9 million sqft by 2020.
Hence, we are listing the factors responsible for the increasing demand of the Co-working space.
- Economically and Budget-Friendly Option
The increasing property prices, capital funding required for owning an office space are the primary reasons that companies prefer to acquire co-working space in India. Presently, the rental cost particularly depends upon the amenities and location. However, the rental income today ranges between Rs. 3,000 to Rs. 25,000. Hence, the co-working space turns out to be a cost-efficient option.
- Optimum Space utilization
The rental space has certain limitations but the co-working spaces are designed to offer ample space to set up the office and it also gives the flexibility to sit, work and relax. The regular office spaces are designed in a traditional manner but the co-working areas allow the companies to use every inch of the arena. Thus, opting for a co-working space is seen as a better option by the companies especially the start-ups.
- Qualitative Infrastructure
The availability of amenities is the most important thing for any and every company. Thus, the features like plug-and-play, strategic location, fire safety features, modern design, eco-friendly interiors and security system attract companies towards the co-working space.
- Enhance Social Life
The professionals sometime feel felt alone in the regular workplaces. But an office in the co-working areas allows the professionals to grow socially. The not so formal communications between people, decisions on current affairs and more depending on the relationship professionals share with each other make them feel refreshed and all this leave a positive impact on their work. This is one of the main reasons that the companies particularly the start-ups prefer an acquiring office in the co-working space.
- Growth Opportunities
One of the main reasons for the increase in demand of the co-working spaces is the opportunity to expand. Many companies in Tier I and II prefer this kind of work space as it gives ample space to meet professionals from different industries and the this plays a crucial role in weaving network as a company can approach multiple firms to be their clients.