The startup eco-sphere has been continually growing across all the major cities in India and despite the occasional lull, the many global giants in the workplace space industry have noticeably shown a great deal of interest in the co-working segment. A huge number of startups are now looking towards cutting down on the operational costs of owning or renting office space New York. This reduce on the operational expenses is enabling the startups to invest more funds within the core business like increasing the production or retaining the talented employees by giving them the desirable higher pay packages. The co-working spaces have become highly popular due to the model of pay-as-per-use with reasonable and defined rates for the set of offered services.
Also, these shared office spaces have certain unique amenities like a food court, crèche services, gaming zones, spa, gym, sleeping pods etc. These all extra amenities make these offices much more popular. All of these amenities enhance the morale in the staffs very positively which eventually enhances productivity. The presence of the daycare facilities provided by the trained staffs also brings a fantastic relief for the working couples who can focus well on the work without compromising on their own responsibilities of parenthood. The workplace spaces also have a great atmosphere with great aesthetics and interior decorating. These factors create a un-cluttered and relaxed environment within these office spaces which alleviate the job stress that is being often gone through by the professionals.
Trends within the co-working spaces expected in 2018 – These shared office spaces offer lots of financial savings which is also along with the probabilities to network with the other entrepreneurs operating from your same work area for achieving certain common goals. So, these shared offices are definitely here to stay and evolve in 2018. Irrespective of our prime potential that these shared office spaces have, in addition there are specific factors which can prove to be obstacles inside their rapid expansion. These factors are the following:
Stakeholders’ orthodox attitude- You will find few property-owners who definitely are not been able to know the concept of coworking completely plus they are often found to remain wary with regards to the leasing of the real estate assets to the co-working operators. Because of insufficient proper awareness, they think that it is far better to rent their properties towards the traditional businesses. Also, this has been witnessed that India has certain faults inside the legal system which acts prove to be deterrents for your co-working space operators to choose judicial battles against the landowners.
Agreements of exclusivity- As per the exclusivity agreement, just one single co-working operator can be accommodated in just one specific building. This leads to the non-optimal usage of space. Hence, there exists a limitation exercised on the growth potential from the co-working space industry.
In spite of the above mentioned hindrances prevailing within the present times, the future of co-working is forecasted to be very bright from the skilled professionals after witnessing the improved need for the co-working offices.
Future growth expectations of co-working offices – The co-working operating companies would be the hottest startups in India as they are receiving an incredible number of investments from your top investors. The task culture is gradually evolving using the more and more adoption from the co-working spaces. There is an average of 85% occupancy of the available co-working spaces in India in the present times. This has been confirmed that at least 20-25% of operational costs may be saved by adopting the co-working spaces. Occasionally, it really is even higher depending on the nature of your own business.
The specialists are from the view that co-working is going to be a dominant trend in India which is certain that it is not just an ephemeral style which is likely to disappear like mullets and bell-bottom jeans. As per the observations, this really is being predicted by a few experts that India offers a fertile ground for the immense development of the co-working spaces. The causes that account for the top demands of co-working spaces are the booming ecosystem of startups and also the large set of flexibility attached to the co-working spaces.
Big investments are already in
India has been witnessing the need for the co-working spaces not merely through the startups and freelancers but also from your major business conglomerates and corporations. The expected funding inside the co-working space provider companies is anticipated to become $400 million in 2018. 70% in the business opportunity is predicted from your big corporations.
In 2018, professionals out of this industry are predicting there will be a rise in the exclusivity agreements. This means there would just be one coworking space in a single building. This can be proving to temporarily dampen the current market of the coworking operators as well as lead to the non-optimal usage of the amenities and space. You can find big btghzb like Cox & Kings, Sequoia and Paytm already invested in the coworking space market and thus they could face a temporary setback in 2018.
Professionals using this industry are forecasting that this co-working spaces would soon do away with the lease-based models which may have certain restrictions attached to the same. They will likely implement an exclusive ownership model that offers even more flexibility with an even lesser price. The demand for co-working spaces are skyrocketing in the present times and this is a sign the future growth of the co-working spaces is actually on the cards.