Co-working spaces biz gains traction
As co-working spaces are getting popular, the business of co-working spaces is also growing.
HYDERABAD: As co-working spaces are getting popular, the business of co-working spaces is also growing. With realty prices rising and the number of start-ups increasing, co-working spaces are finding good demand and experiencing encouraging growth. According to a report by global real estate consultancy and services company Colliers International, major co-working operators in India leased about 1.2 million sq ft in 2016, which accounted for just three per cent of the overall leasing volume in office space.
This number could jump to 8-9 million sq ft by 2020, pointing out to the promising growth in the segment.
Awfis, Bhive Workspace, 91springboard and Cowrks are the notable players in co-working space in India. According to industry insiders, while most of the co-working spaces are concentrated in Bengaluru, Gurugram, Mumbai even Hyderabad are witnessing a growth in co-working spaces now. As the segment sees growth, even tier-two cities such as Pune, Ahmedabad and Kochi could also see emergence of co-working spaces.
“The business of co-working spaces is still in nascent stage but it is poised for promising growth and co-working spaces are going to be the new norm in the coming days. While there were just about five or 10 players in the field two to three years ago, now the number of co-working providers stands at 150-200. To cater to the growing demand, we raised an investment of $20 million recently. We are planning to set up more than 100 co-working spaces with 35,000-plus seats across Mumbai, national capital region, Bengaluru, Chennai, Hyderabad, Kolkata, and Pune in the next 24 months,” said Amit Ramani, founder and CEO of Awfis Space Solutions, a leading player.
The reason for co-working spaces getting popular is they don’t just provide space at affordable prices, but also ensure an environment conducive for the growth of companies, networking opportunities, etc.
“Co-working spaces will see experimentation regarding amenities, as competition grows. Providers will strive to differentiate their products in terms of amenities, offerings and quality of space,” explained Surabhi Arora, associate director – research at Colliers International India.