How Coworking Spaces Are Going To Shape the Future of India

During the 2010s, coworking spaces were a relatively new concept. But today, they have become one of the most profitable real estate sectors in India. Over the last few years, this sector has been experiencing rapid growth. The recent outbreak of the COVID-19 pandemic has propelled it much further.

Since March 24, 2020, companies have started trimming their workforces, adopted business continuity plans, and for workers, home and office became synonymous during the complete nationwide lockdown. However, during the crisis, the Indian business landscape demonstrated its inherent resilience and started bouncing back during the unlock periods, albeit with changes in the traditional idea of working in an office.

Infosys has decided to adopt a permanent work-from-home (WFH) model for its 33% – 55% employees. TCS, the largest IT firm in the country, is also going to have 75% of its global workforce adopt the WFH model by 2025. Indian co-working spaces are striving to turn this new concept of workspaces to their advantage. In fact, by 2022, the industry is anticipated to reach a whopping valuation of $2.2 billion with an increased choice of coworking spaces in India. While cities like Bengaluru, Hyderabad, Gurugram, etc. are experiencing the highest demand for co-working spaces, other tier-II and tier-III cities aren’t left far behind either.

Key Driving Factors Behind the Growth of Indian Co-working Spaces

Let’s take a look at the three major reasons that are promoting the exponential growth of the Indian co-working space industry.

#1 Cost-effective option

Small businesses and start-ups have always acted as major advocates of co-working spaces. The ability to hire fully-furnished shared office spaces at a fraction of the cost of renting a traditional office space means they can save big and use that money to develop the core areas of their business operations. Typically, co-working spaces charge a very nominal fee and don’t have the requirement of paying any hefty deposit. Additionally, professionals who tend to use co-working spaces usually choose locations near their homes, which simply translates into significant savings on transportation costs.

#2 Collaboration and networking opportunity

While the Indian business landscape has adopted WFH really well, the absence of a collaborative environment acts as a major deterrent for many professionals. There are lots of Indian co-working space providers now that emphasize providing activity-based work environments where members can meet, network, and collaborate with professionals from the same or different fields. This essentially acts as the breeding ground for fresh ideation and innovative business opportunities.

#3 A changed work environment without the distractions

One of the major drawbacks of the WFH model is the probable presence of multiple distractions, which often lead to a loss of motivation and productivity. Most of the present co-working spaces ensure that their work environments remain motivating enough for members to help them increase their output. Additionally, these facilities often offer loads of industry-leading amenities that not only attract members but help them socialize with others as well. From 24/7 security and the latest IT infrastructure to fully-equipped kitchens, broadband Internet, and much more – they offer completely hassle-free and productive work environments.

Closing Thoughts

With the limited feasibility of WFH in India, we can expect to see co-working spaces as a game-changer in the ‘new normal’ scenario. Apart from the above-mentioned factors, these facilities are also focused on eliminating factors that may harm the wellbeing of employees such as prolonged sedentary work patterns, the absence of social interaction, etc. Today’s increasingly remote work culture is bound to boost the growth of Indian co-working spaces, especially when this model is being adopted as a long-term solution.