Initially started as a freelancer’s movement, coworking spaces have quickly gained massive momentum in the metropolitan cities of India. So much so, that the number of shared office spaces is estimated to rise around 25% in the next five years.
According to reports, post-pandemic, rise in coworking spaces have seen an upsurge of nearly 70% in every quarter.
Here are some of the predictions experts are making regarding the future of coworking spaces in India.
Traditional companies switching to coworking spaces
While e-commerce and some IT companies have embraced shared office spaces, the more traditional industries are slower to changes. However, due to the pandemic, many businesses are looking for a more sustainable environment to adopt with the young and energetic mindset.
So, a coworking space would be one of the many steps taken by bigger companies, according to experts.
Tier 2 and Tier 3 cities will have a steady change
Until now, shared office spaces were more of a confined to metro cities, mostly Bangalore, Delhi, Mumbai. But from 2019, this trend has been slowly shifting towards Tier 2 cities like Jaipur, Ahmedabad, Indore, with swanky office spaces and newest amenities.
In fact, according to CBRE, if the continuation of shared office areas continues to move up, the total leased area of future coworking spaces would be around 6 to 10 million sq. ft.
Sustainable working environment
Sustainability is a big issue nowadays. Many coworking office spaces are designed to be more environmentally friendly by using recycled materials, more greenery, natural light to increase more productivity.
Some offices even have small plant nurseries for the workers to care for. Some are finding solutions to reduce carbon footprints by using solar energy, copper ACs.
Newer amenities for Gen Z
According to reports, millennials and Gen Z represents around 46% of the workforce in India. In fact, India is the third-largest country for startup ecosystems just behind China and the U.S with a huge drive of younger generations working in these setups.
In the future, they will be the main force behind rising the country’s economy. Coworking spaces give more flexibility to people. Amenities like cafeteria, gyms, baby care facilities, courier services will increase by the next few years.
The real estate market will grow despite the huge blow from the recent pandemic
The real estate market is one of the few industries to have taken a huge hit due to the pandemic. However, as the market is still recovering, many experts are predicting that the future of coworking spaces in India have a bright prospect. By 2025, it is said that over 42% of India will work in urban office spaces therefore increasing the demand for office rents.
Not only shared office spaces, but also the demand for recreational spaces like coffee painting, fitness classes, or workshop spaces will increase. These training and events have a huge impact to keep the employees motivated and energetic, therefore, many organizations are working towards creating a much healthy environment for the workers.
Every industry goes through innovation after a few years. The change in office dynamics to be a fast-evolving, coworking space was completely delusional for some a few years ago.
But, with the recent changes in the market, companies have been started to think differently with more cost-effective, flexible ways to exist together. Some businesses even want to share industry-specific office spaces with shared technology and amenities within a particular industry. For instance, a particular office space can be shared by an event management company, an interior decoration office, a graphic designing startup, and some content marketers.
This in turn makes collaboration with each other much easier, helping to build a sense of community.