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Coworking space in India doubled in 4 years: Report

The concept of coworking spaces has witnessed a remarkable surge in popularity among businesses in India, with demand doubling in the past four years. In the first quarter of 2023, coworking spaces in India accounted for a significant 27% share of the net absorption of 8.2 million sq. ft. across the top seven cities, representing a substantial increase from 14% in Q1 2019.


Coworking Space Landscape in India

Growing Demand and Absorption

Bengaluru and the National Capital Region (NCR) have emerged as the frontrunners, accounting for two-thirds of the net absorption of coworking spaces in Q1 2023. Pune and Chennai have also experienced substantial growth, absorbing approximately 0.52 million sq. ft. of coworking spaces during the same period. Overall, the top seven cities have witnessed a staggering 90% growth in the net absorption of coworking spaces, indicating a shift in preference towards flexible workspaces.

Post-Pandemic Shift towards Flexibility

The COVID-19 pandemic has significantly impacted the workplace dynamics, prompting many companies, particularly those in the IT/ITeS sectors, to opt for flexible workspaces over traditional offices. The appeal of coworking spaces in India lies in their diversified locations, including residential areas, malls, and hotels, as well as their cost-effectiveness compared to conventional offices with long lock-in periods. This newfound flexibility has been a key driver for the exponential growth of coworking spaces.

Fueled by Low Vacancy Levels

Low vacancy levels in Grade A offices in cities like Bengaluru, Chennai, and Pune, coupled with the scarcity of commercial spaces in Delhi NCR, have fueled the demand for coworking spaces in Delhi NCR. The limited availability of conventional office spaces in NCR has further fostered the growth of coworking setups in areas such as Gurugram and Noida. This trend indicates a shift towards a more agile and adaptable working environment.

Regional Insights: Coworking Spaces in Major Indian Cities

Southern Cities: Bengaluru, Hyderabad, and Chennai

In the first quarter of 2023, the southern cities of Bengaluru, Hyderabad, and Chennai witnessed a net office absorption of around 4.6 million sq. ft., with coworking players contributing to 26% of the total. This region has been at the forefront of embracing the coworking revolution, catering to the growing needs of businesses and professionals seeking flexible and collaborative workspaces.

Western Markets: Mumbai Metropolitan Region and Pune

The western markets, including the Mumbai Metropolitan Region and Pune, experienced a net absorption of approximately 1.48 million sq. ft. of office space in Q1 2023, with coworking players contributing to 24% of the total. This indicates a significant presence of coworking spaces in the region, catering to the diverse demands of businesses and freelancers.

National Capital Region (NCR)

In NCR, coworking players accounted for 32% of the roughly 1.89 million sq. ft. of absorbed office spaces in the first quarter of 2023. The demand for coworking spaces in Delhi NCR has surged due to low commercial space vacancy levels and the need for flexible work arrangements. Areas such as Gurugram and Noida have witnessed the emergence of vibrant coworking ecosystems, attracting both startups and established companies.

Kolkata

Kolkata, although relatively smaller in scale compared to other major cities, has also witnessed a growing trend towards coworking spaces. In the first quarter of 2023, coworking players accounted for 12% of the 0.25 million sq. ft. of office space absorbed, reflecting a steady increase in demand for flexible workspaces in the city.

Benefits of Coworking Spaces in Delhi NCR

·        Enhanced Flexibility and Collaboration

Coworking spaces offer businesses and professionals the flexibility to choose their work hours and locations, enabling them to strike a better work-life balance. Moreover, these spaces foster collaboration and networking opportunities, allowing individuals from diverse backgrounds to connect and exchange ideas, potentially leading to fruitful partnerships and collaborations.

·        Cost-Effectiveness and Scalability

For startups and small businesses, coworking spaces present a cost-effective alternative to traditional office setups, as they eliminate the need for hefty initial investments and long lock-in periods. Additionally, coworking spaces provide the flexibility to scale up or down as per business requirements, allowing companies to adapt to changing dynamics without the burden of fixed overhead costs.

·        Access to Amenities and Services

Coworking spaces in Delhi NCR offer a wide range of amenities and services that enhance the overall work experience. From high-speed internet connectivity and modern infrastructure to well-equipped meeting rooms and communal areas, these spaces are designed to cater to the diverse needs of professionals. Furthermore, some coworking spaces provide additional perks such as concierge services, fitness facilities, and recreational areas, promoting a holistic work environment.

·        Vibrant Community and Networking Opportunities

One of the key attractions of coworking spaces in India is the opportunity to connect and collaborate with like-minded individuals and businesses. These spaces foster a vibrant community where professionals from various industries come together, creating an environment conducive to networking and knowledge sharing. Such interactions can lead to valuable insights, partnerships, and even new business opportunities.

Conclusion

The coworking revolution in Delhi NCR is a testament to the changing dynamics of the modern workplace. With businesses increasingly embracing flexibility and collaboration, coworking spaces have become the preferred choice for many professionals and companies. The rise in demand, coupled with the benefits of cost-effectiveness, scalability, and access to amenities, has fueled the growth of coworking spaces in Delhi. As the trend continues to flourish, these dynamic workspaces will play a crucial role in shaping the future of work in India.

 

 

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Location: Delhi, India

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