Flexible office space across Bengaluru, Mumbai, and Delhi-NCR is seeing increasing demand from large corporate occupiers as they look to trim costs and make their real estate portfolio agile amidst dynamic industry environment.
According to JLL data, Mumbai’s share in total office leasing in co-working sector tripled to 21% during January – September 2018 compared to 7% in the corresponding period of last year.
Bengaluru and Delhi-NCR are other prominent markets that saw their share growing by over three times.
“The concentration of co-working spaces is expected to intensify further in Bengaluru, Mumbai, and Gurgaon due to the availability of infrastructure and a vibrant start-up ecosystem. In times to come, some tier II and III markets are also expected to witness the emergence of co-working hubs,” said Ramesh Nair, CEO and country head, JLL India.
The report further states that nearly 40-45% of the demand for co-working space comes from corporates and large enterprises.
Of the balance, small and medium enterprises along with individual professionals contribute 35-40% of the demand with 15-25% from start-ups.
“Technological disruptions are affecting the way companies conduct their businesses globally. Today, almost 90 percent of C-suite leaders anticipate digital trends to disrupt their industries to a great or moderate extent. Commercial Real Estate heads will need to adapt their workplace strategies to this new reality,” said Sandeep Sethi, MD, integrated facilities management – West Asia, JLL India.
An enormous gain for flexible spaces was low and insignificant upfront expenses in contrast with a conventional lease. Also, a co-working space is likely to lead to cost savings of 20-25% in markets like Delhi-NCR, Mumbai, Bengaluru, and Pune compared with leasing traditional office space.
Currently, there are around 350 co-working players/service providers operating an estimated 500 shared workspaces across the country, compared with less than 30 in 2010, mentioned the report.
Source: Economic Times Realty