Coworking spaces in India are in demand after the pandemic. The adoption of hybrid work model is prompting businesses to look for flexible spaces, resulting in new opportunities opening up in the segment.
Enterprises now recognize the need for a smart workspace as it encourages new ways of working and increases efficiency. The new generation of entrepreneurs, joining MNCs and other medium sized businesses, is reshaping this segment as they embrace the coworking space culture.
Flexible office space is now considered a smart investment by businesses as it provides them the advantage of focusing their operations and expansion and cutting down on unnecessary expenses. The demand for coworking spaces has already nearly doubled from pre-Covid-19 levels and is expected to increase manifold in the coming years.
Nakul Mathur, MD, Avantha India, a leading service provider of fully equipped office and co-working spaces, highlights how the strong demand for coworking spaces in India has made coworking spaces the most sought after property has made it.
The demand for multinational companies for coworking spaces is huge. What is area?
MNCs, like small businesses, want to be agile to respond to changing conditions in the post-Covid era. Co-working spaces fit very well amidst such a change in demand. Co-working is here to stay as it attracts businesses both small and large. All businesses can benefit from co-working spaces because they are cost-effective, convenient and scalable.
This allows you to either upsize or downsize. When new employees are hired, the number of desks can be increased, thereby optimizing the overall CAPEX and OPEX. But the situation is not the same with traditional spaces where rental agreements are stringent, resulting in significant fluctuations in rates and exorbitant costs to set up and run the space.
Acceptance of coworking spaces in a post-pandemic world?
Co-working spaces are becoming essential in the post-pandemic world, not only for entrepreneurs and freelancers, but also for large corporations. Businesses are now embracing co-working spaces with a hybrid-work culture because coworking spaces offer flexibility, simplified agreements, and an easy entry-exit option.
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The role of coworking spaces in the development of the real estate industry?
Coworking will continue to be in high demand because it allows businesses to reduce their costs. This sector will continue to be important in the recovery of real estate. Owing to the increased demand, this segment will offer higher ROI while attracting a large number of investors, landlords and developers. Institutional players will increasingly enter the space, attracted by its long-term potential, adding structure and organization to the business.
What are the trends currently visible in the sector?
The new model accommodates the changing desires of the workforce by providing a more collaborative and open environment. Office layouts with lots of open spaces and natural touches are likely to become popular in 2022. Offices will be properly ventilated, as the pandemic has emphasized social distancing and a healthy work environment. Similarly, the use of sustainable materials like bamboo, installation of indoor plants, efficient air conditioning etc. will increase.
There will be more emphasis on new technology like Artificial Intelligence (AI). As predicted by the World Economic Forum (WEF), the workplace complex will be highly technologically advanced in the coming years. AI in the workplace will be used mostly for repetitive tasks, allowing people to focus on creativity, imagination and strategic thinking.