Co working office space the new trend in India

Real Estate Business in India is changing fast. Both as a business and also as a market for innovation in the product range.

With the coming of the foreign investments in India the demand for office space has seen phenomenal growth. The leasing of space by co working operators in India has seen a continuous upward trend since 2018. The reasons for this trend are many folds.

Rising prices of real estate

The main reason for this trend has been the rising prices in the real estate in urban India.  Land is getting scarce and the building trend has changed to building vertically instead of horizontally. More and more firms are choosing to expand vertically in high rise buildings instead of horizontally. The prices of land are going up every year as the pressure of the population and the expanding economy on land resources is increasing.  Corporate houses are now realizing the need to save on fixed assets in the form of land and buildings and concentrate more on using their funds on marketing and human resource management. The innovation in technology has made it possible for businesses to work from limited spaces with limited human resources. Work which was previously labor intensive has become more technology dependent.

What so co working spaces offer

The co working spaces are offering a number of facilities which are attracting more and more corporates to go in for these spaces:

A common Reception desk for the whole building or office complex means that you save on a function in the business which would normally cost you money in the form of a setting up front office with a staff to take care of it. A receptionist with furniture and office equipment which normally can be better utilized in productive purposes.

Common conference facilities and conference rooms. Normally a conference room is used very seldom in case of an important meeting. That means that the space is lying vacant most of the time. Common conference facility means you pay for the space only if you need it not for it laying vacant.

Common pantry. A common pantry or a coffee shop saves money on the need to buy all the consumables which normally become a source of wastage and misuse in the office.  It has been noticed that the cost of common Pantry reduces the cost for the tea and entertainment expenses in an office by at least 30 to 50 percent.

Maintenance costs. Another major saving in the costs for a shared co working space are the maintenance costs of co working space compared to self-owned space.  It is a known fact that the maintenance costs for self-owned space are at least double of what the costs of shared space are.

Effects of Covid 19

The current pandemic has further strengthened this trend as the pandemic has forced the corporates to promote the work from home culture and in India at least it has been proven that working from home is possible and can successfully be undertaken. This has cut down on the need for large offices and has forced many offices to work from limited spaces and this new trend is likely to continue for a long time in the future.

There has now been a surge already in most of the metro cities of construction of and creation of more co working business spaces. Delhi, Bengaluru, Mumbai are three cities with large corporate populations and these are definitely on the forefront of this revolution.