As the coworking industry continues to evolve and expand into new markets, the demand for shared office space shows no signs of slowing down.
High - end luxury co working brands like wework, cowork and other players are continuing to thrive, where smaller brands are finding new and inventive ways to set themselves apart.
The trend toward larger coworking spaces which are more profitable over the long term -- has led many coworking companies to move to larger premises or open additional locations to accommodate an expanded customer base.
The Coworking space is continuously evolving as operators are exploring formats, business models and trying to create their USP with value added, innovative services.
The coworking segment in India has seen impressive growth in recent years and is now a catalyst of sorts for modern workspaces..
India, on the back of its strong and emerging startup ecosystem, has witnessed impressive growth in the coworking trend, especially in the last few years..
And with India's ever - growing start - up ecosystem, brimming with new - age talent and entrepreneurs, this trend seems set to grow further in 2020 and beyond..
With such promising numbers and the constant growth scalability of coworking hubs, we can say that the future of co - working spaces in India is very bright and evolving..
The growth trends of coworking in India
As per the report published by NASSCOM, India had around 4,200 start-ups in 2015, which is ready to grow by 2.2 % to reach 11,500 by 2020.
A report published in February 2018 by the Confederation of Indian Industries, in 2017, the size of the co - working market in India increased by more than 50 %.
India is all set to have 10,500 start - ups by 2020 (NASSCOM Report) which will be a major boost to the sector.
Now India is the second largest market for the coworking industry, after China, with the sector slated to witness an upward growth trajectory.
The Coworking Ecosystem in India
Initially, in India we had coworking spaces with only the start - ups in mind, but now well developed and luxury office spaces have also become a trend.
In India, there are 200+-odd companies offering co - working spaces and a large part of them still perceive themselves as startup - focused spaces.
Although the coworking spaces mushroomed on India's to serve start - up community and freelancers, yet they are no longer restricted to only these two segments of the working population and now serving to bigger corporates and also offshoring companies.
Coworking – the new asset class
Now, landlords and investors are more comfortable allocating between 15 % and 30 % of a property to coworking, according to the report.
The co working space is move - in on as a favoured asset class for many foremost real estate developers and investors.
The sudden proliferation of Coworking spaces has now prompted investors and developers to evaluate the segment's potential as an investment tool.
Office investors believe coworking spaces can help push vacancies down, add value for landlords, stabilize buildings, and improve the health of some market areas.
Coworking spaces provide a holistic approach which consciously and cost - effectively aim to address the employee engagement and real estate needs of all companies, big and small, as well as real estate owners and landlords.
The coworking business model
Property owners who leased spaces to companies initially started off with a simple monetisation model such as charging fixed term rent.
The achievement of a business renting the space marks, in turn, the success and profitability of a co - working space.
At the heart is revenue generation by renting the space to start-ups and companies, through monthly rentals or pay - per - seat models.
Brands setting up coworking spaces are now entering into a revenue sharing model with landlords who earn a percentage of the business revenue generated by these spaces.
Members do not have to deal with the burden of expensive and long - term office rental agreements and commercial property owners get more out of spaces that are lying idle by renting out to coworking players.
The evolution of community culture and coworking
The vibrancy and diversity that each individual brings into the co - working spaces creates an ecosystem of ideas and innovations.
Diverse community: Coworking players take immense pride in offering their members a community of like - minded individuals that help people professionally as well as personally.
Another important benefit is the collaborative nature of the work space, aiding in building communities and business opportunities for those working there.
Such kind of working space provides a lot of perks and benefits, and an environment that has hardworking professionals across different industries.
Working in such an environment thus serves as a platform for professionals to collaborate, interact and bring greater productivity to their respective tasks and help improve the bottom line of the organisation.
The brands with access to such exclusive range of offerings can get great discounts and can specially help them curate experiences for a productive and hassle - free working environment and bettering their future.
Coworking is growing beyond urban cities
Coworking is not limited to large cities but even Tier 2 and 3 cities - be it Jaipur, Indore, Kochi or Chandigarh - have access to it.
However, the sector has also reached the tier 2 cities like Chandigarh, Ahmedabad, Kochi, Indore, and Jaipur witnessing these swanky spaces. These places are coming up as places that are attracting investors in commercial spaces as the capital appreciation is good in these locations
Bangalore and Delhi NCR are the most preferred markets for these flexible workspace operators in India, accounting for half of coworking space leasing in the country.
With urban and metro centers fast approaching a supply plateau, the action is expected to shift to Tier 2 and Tier 3 cities.
Freelancing culture and coworking
Freelancers of all types, including smartphone professionals, self - employed workers, small businesses, and smaller teams can benefit highly from coworking office spaces.
Some sites are 'hybrid' allowing large firms to work in the same offices as freelancers and some are exclusively for independent workers.
Compared to their office - based counterparts, freelancers do not get many opportunities to expand their social and professional networks while at work, especially if they mostly work from home.
They're springing up all over and being touted as the offices of the future for independent workers and companies alike, but why?
Unrestrained internet connectivity and efficient tech support are the basic requirements for conducting a successful seminar or VC, which freelancers don't have access to from home or coffee shops.