A segment that initially was driven solely by start-ups, millennial and small/medium-sized enterprises now goes head-to-head with large companies as they also opt for flexible co-working spaces to fulfill the requirements of their short-term expansion plans. Large co-working operators are likely to see a huge growth in the coming years.
There are currently more than 200 co-working players operating across the country, out of which the top seven players alone have more than 350 centers spread across multiple cities in India. These players include OYO’s Workspace, WeWork India, 91springboard, Cowrks, Awfis, Smartworks and Regus.
The sector had a supply of 7 million sq ft in area by the end of 2018 which only grew to cross 12 million sq ft towards the end of 2019 taking a leap that’s almost twice in growth, making it safer to predict the coming success in the near future.
Looking the rates at which these leading players are leasing office spaces across the country, the numbers are likely to double or even triple in the next two years . Millennial are set to form 50% of the global workforce by 2020, making the demand for such flexible spaces to grow since the current lease-based structure does not offer such flexibility and cost efficiency.
Despite what people have to say, the segment has emerged as a viable asset class for landlords and operators in India. It is likely to see the rise of this ownership model which has been developed in partnership with landlords, developers or the space providers. This arrangement will focus on creating built-to-suit spaces that are customized as per the tenant’s needs.