Co-working is a style of work that involves a shared workplace, often an office, and independent activity. Unlike in a typical office, those co-working are usually not employed by the same organisation
Just as India is on the march towards economic progress with the adoption of new policies, campaigns and thought processes, organisations too are experimenting with various ways to increase both efficiency and profit. One of the recent trends is that of the culture of co-working spaces. It’s a concept that lends a helping hand to startups and corporates who are looking for space for their staff to work from. According to a recent research report, more than 1.2 million sq. feet area was leased by co-working operators in India in the last fiscal year, which accounted for almost 3% of the overall leasing volume.
Co-Working Space Market
“India is clearly a force to reckon with, being the next leading startup nation. With budding entrepreneurship and capitalization of real-estate cost, the potential market size for the co-working segment and shared workspace is likely to take a leap of 20-25%” opines Neetish Sarda, founder of Smartworks. With the growth in economy, co-working space operators are now planning to expand their roots with the help of franchisees.
“If co-working continues to grow as it is doing right now then the growing proportion will take the industrial commercial real estate industry to another level. I also believe that it will touch USD 100 billion in India itself,” says Smeet Gala, founder and CEO of WorkAmp Spaces.
A Growing Workspace Revolution
As the co-working culture continues to expand, this revolution is also extending its reach from city to city; the rapid growth in the sector is creating better options for people to work together and also helping co-working operators to gain profits.
“In our past recent experience, we have observed that the rise in demand is no longer restricted only to startup companies. There has also been a considerable increase in demand amidst small businesses that are looking for community building and large corporates looking forward to sharing office space to maximize their productivity. We also believe that this business is generating approximately 40+% margins,” says Sarda.
Sharing the opinion, Gala adds, “Co-working is a service-based industry and is 100% profitable. Therefore, there are many entrepreneurs who are entering this sector. For anyone who invests in this business model, the chances of being in a win-win situation are very high.”