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 office space industry have noticeably shown a considerable amount of interest in the co-working segment. A large number of startups are looking forward to cutting down on the operational costs of owning or renting office space New York. This cut down on the operational expenses is enabling the startups to invest more funds in the core business like increasing the production or retaining the talented employees by providing them the desirable higher pay packages. The co-working spaces are becoming 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 such as a food court, crèche services, gaming zones, spa, gym, sleeping pods etc. These all extra amenities have made these offices much more popular. Each one of these amenities enhance the morale of the staffs very positively which eventually enhances productivity. The existence of the daycare facilities offered by the trained staffs also brings a great relief towards the working couples who are able to focus well on the work without compromising on the responsibilities of parenthood. Work spaces also have a great atmosphere with great aesthetics and interior decorating. These factors produce a un-cluttered and relaxed environment during these office spaces which alleviate the work stress which is being often gone through by the professionals.
Trends inside the co-working spaces expected in 2018 – These shared office spaces offer a lot of financial savings which is in conjunction with the chances to network with all the other entrepreneurs operating through the same work space for achieving certain common goals. So, these shared offices are certainly here to stay and evolve in 2018. No matter our prime potential that these particular shared office spaces have, there are also certain things which can be obstacles in their rapid expansion. These factors range from the following:
Stakeholders’ orthodox attitude- There are few property-owners who are not had the opportunity to know the concept of coworking completely and they are generally often found to stay wary concerning the leasing of the real estate assets for the co-working operators. Because of insufficient proper awareness, they believe that it must be 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 end up being deterrents for the co-working space operators to choose judicial battles against the landowners.
Agreements of exclusivity- As per the exclusivity agreement, only one co-working operator can be accommodated in a single specific building. This may lead to the non-optimal usage of space. Hence, there exists a limitation exercised on the growth potential of the co-working space industry.
In spite of the above hindrances prevailing inside the present times, the future of co-working is forecasted to be very bright by the industry experts after witnessing the improved demand for the co-working offices.
Future growth expectations of co-working offices – The co-working operating companies would be the hottest startups in India because they are receiving an incredible number of investments from your top investors. The work culture is gradually evolving with all the a lot more adoption from the co-working spaces. There is an average of 85% occupancy from the available co-working spaces in India on the present times. This has been shown that at least 20-25% of operational costs may be saved by adopting the co-working spaces. Sometimes, it is even higher depending on the nature of your business.
The experts are of 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 probably going to fade like mullets and bell-bottom jeans. Depending on the observations, this is being predicted by several experts that India delivers a fertile ground for that immense growth of the co-working spaces. The causes that take into account the high demands of co-working spaces are the booming ecosystem of startups as well as the large set of flexibility attached to the co-working spaces.
Big investments are already in
India continues to be witnessing the need for the co-working spaces not only through the startups and freelancers but also through the major business conglomerates and corporations. The expected funding within the co-working space provider companies is expected to be $400 million in 2018. 70% in the home business opportunity is expected from your big corporations.
In 2018, professionals using this industry are predicting there would be a rise of the exclusivity agreements. This means there would just be one coworking space in a single building. This really is proving to temporarily dampen the current market of the coworking operators and in addition lead to the non-optimal use of the amenities and space. You can find big btghzb like Cox & Kings, Sequoia and Paytm already committed to the coworking space market and thus they could face a temporary setback in 2018.
Professionals from this industry are forecasting that this co-working spaces would soon get rid of the lease-based models which have certain restrictions attached to the same. They will probably implement an exclusive ownership model that provides much more flexibility with an even lesser price. The interest in co-working spaces are skyrocketing on the present times and this is a sign that the future development of the co-working spaces is obviously on the cards.