Growth of coworking Industry in India
Spotlight | DC Correspondent
We are supposed to be the most productive and creative versions of ourselves every day in the office
The emergence of various startups throughout the world has led to an increased demand for innovative solutions for maintaining resources. (Photo by arrangement)
Keeping up the efficiency while working is important to yield good results at the end of the day. Something similar happens in our workspace. We are supposed to be the most productive and creative versions of ourselves every day in the office. With a boring environment and hectic work, schedule makes this task seem next to impossible, as it is in most traditional offices.
The emergence of various startups throughout the world has led to an increased demand for innovative solutions for maintaining resources. One such solution happens to be coworking office spaces. The coworking industry is here to change the dynamics of how we work professionally. Many reports by various established and reputed organizations conclude that the coworking industry is all set to have a stable rate of growing about 21.3% from 2021 onwards.
Especially in India, the concept of coworking has been gaining immense popularity. India ranks third from the top in terms of the startup ecosystem in the whole world. This demands an increased number of office spaces to incorporate such businesses. This is why according to many reputed sources; coworking spaces have observed 80% of demand recovery. With as many as about 1000 established firms of coworking services and the numbers expected to quadruple in the next three years by experts, the Indian coworking market is set to explode.
Let us see how what makes the coworking industry in India hold such potential.
Why are coworking offices in demand?
The demand for coworking offices is increasing day by day worldwide. Drawing conclusions from the reports, the number of coworking office spaces is expected to go up to about 41,975 by the time the year 2024 comes to an end. This immense rise in the numbers is due to the numerous benefits of this sustainable alternative to traditional offices.
Startups are businesses that are made from the ground. With limited resources and the terror of failure at every step, it is essential for business owners and various professionals, entrepreneurs lookout for sustainable and affordable alternatives to almost every facility that they avail.
While the facilities should not cause a strain on the pocket, it is supposed to be of good quality too. Since coworking offices check with all these requirements, the industry is gaining popularity in both developing as well as developed nations. The flexible coworking office spaces are observing and maintaining a global market value of about 26 billion US dollars.
In India, the benefits of coworking spaces are being acknowledged by various startups too. The coworking industry has observed a rise of 277% during the first four months of 2019 itself. The best part is that the graph is not expected to come down any sooner. With new startups coming up almost every day in India, the importance of this innovative take on office spaces is only going to spread to a wider audience.
The coworking spaces have experienced a massive jump in the last 4 to 5 years. In 2017, the coworking spaces were reported to be around 1.5 million sq. feet. By 2020, the numbers jumped up to as high as 10 million sq. feet. With such a jump in 3 years, one can only imagine the jump by the end of the decade.
What is causing the shift?
With all the numbers available to us, there is a very obvious conclusion to be drawn – there has been a massive shift to coworking spaces, which is only expected to increase in the future. You might wonder, what are such benefits causing so many startups to ditch the traditional offices and shift to the coworking ones? Here are a few of them:
The coworking spaces are much more affordable than traditional offices. This is because the amenities and various services are shared by many professionals under the same roof in the case of coworking spaces.
The environment of the coworking office space is much more beneficial for an employee than a traditional office. Think for yourself – would you rather wish to work in an office with the same people and limited facilities, or with different kinds of professionals and a lot of amenities?
According to Ankur, Founder of Coworkingers.com - India’s leading coworking space aggregator - "The scope of networking and establishing relevant connections are highly facilitated in a coworking space. This is why various startups in India actively choose to set up their office in a coworking space – they get to interact and work under the same roof as professionals with different areas of expertise."
The equity of coworking office spaces amongst the various office environments currently is about 3%. As per the experts, this percentage is also expected to hike by 2023 to about 4.2%.
With all the statistics and data mentioned above, we can safely conclude that the coworking spaces are continuously experiencing a rise in the demand for their services. This demand is only expected to increase in the future by many experts and organizations.
The future of the coworking industry in the world seems as bright as the sun today. History acts as a witness that any innovative concept which helps sustainable development has always exploded in terms of value in the global market. Choosing coworking offices wisely offers the same evolution to the way of working in an office. Particularly for developing countries like India, the future of this industry is full of massive potential.