Flexible Workspaces continue Impressive Growth in India
The face of India’s corporate sector seems to be growing at an unexpected rate. The upsurge of mega structures and adoption of new strategies that support a strong real estate in the country, are all factors driving this sector’s growth.
Given these aspects and the increasing interest in the Indian market, it is no wonder that more people are embracing the concept of flexible workspaces.
Co-working spaces, as they are popularly known, have become popular among startups and established companies alike. So much so that CBRE, a real estate firm, anticipates that coworking firms will occupy nearly 10 million sq ft. of office space by 2020.
Colliers International, another real estate company, reported that the leasing activity in seven major cities in India had risen to 50.2 million sq ft in 2018. Co-working spaces, which started becoming popular in 2017, took up 14% of this leasing activity. Keep in mind that this is the highest it has risen to in the past eight years.
Why a Coworking Space?
What makes flexible workspaces a preferred option by Indian firms?
More economical to renting and leasing
According to a 2018 report by Nasscom-Zinnov, Bengaluru, India ranks third when it comes to cities with the highest number of startups. This is after Silicon Valley and London.
The price of leasing a commercial space in Indian cities has increased parallel to their growing demand by startup companies. Thus, it has become an incredibly expensive affair for a business of any size to rent out a traditional office.
If a company were to lease a typical office space, they’d have to pay an upfront cost that includes a refundable deposit, and an advance on routine maintenance. Let’s not forget the cost of purchasing office furniture, equipment, and the configuration of electrical fittings.
But with a coworking space, the only cost incurred is a small monthly rent for renting seats to your staff. And the good thing is that the amount you pay is less compared to the one you’d pay for renting a traditional office.
Opportunities to network
Another perk that’s making flexible workspaces such an attractive option in India is the fact that they offer an opportunity to network. A coworking space brings people from different backgrounds, cultures and organizations together.
This means that an employee from one firm can build meaningful relationships, seek different viewpoints or find solutions by looking at issues in an entirely different way.
Nowadays, a lot of companies prefer to give their employees a flexible and collaborative work setting, one that prioritizes employee-enrichment activities, and networking events. A shared working space is able to provide this and then some.
Workspaces with a focus on productivity
Many co-working spaces in india are fully equipped. By fully-equipped we’re not just talking about essentials such as Wi-Fi, printers, and coffee machines, but equipment that help workers be more healthy and productive as they work.
According to Jon Muller at Ergonomic Trends who tracks co-working space development around the world, one of the key reasons people are drawn to flexible workspaces is the design and ambiance of these spaces that reduce stress and boosts productivity:
“Health positive amenities such as ergonomic office chairs, standing desks and natural lighting are expensive to implement for small businesses. By migrating employees to flexible workspaces that already have these components set up, companies improve employee morale while saving significantly”.
Just as importantly, co-working spaces save startups a great deal of time. Such companies don’t have to spend days or weeks waiting for their working premises to be set up with the right equipment. Instead, they can rent a shared workspace and start working immediately.
Scale your business
When a company rents a shared workspace, it can scale up or down whenever it sees fit.
This has been a major challenge when working from traditional offices. If a business wanted to downsize, it would have to relocate to a smaller space. Similarly, if they wanted to expand their operations and hire more staff, the only option would be to move to a bigger space.
Flexible workspaces are the ultimate answer to this problem. Thinking of hiring a few more IT specialists? Simply rent out more seats.
Millennials Driving the Trend
Initially, being an office worker meant sitting in a designated cubicle by yourself, working all day long. The only chance you’d get to interact with your colleagues was during lunch break and when you’re heading home.
However, the work culture has changed and co-working spaces are becoming a preferred option to individual cubicles. What makes them so popular in India is because they are considerably cheaper than leasing traditional office spaces. These shared working spaces are also fully-equipped. And, they offer networking opportunities, a factor that a lot of millenials place emphasis on.