The startup eco-sphere has been continually growing across all the major cities in India and despite the occasional lull, the different 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 looking towards reducing on the operational costs of owning or renting workspace New York. This reduce on the operational expenses is enabling the startups to spend 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 have become highly popular because of 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 even more popular. All these amenities increase the morale from the staffs very positively which eventually enhances productivity. The actual existence of the daycare facilities offered by the trained staffs also brings a fantastic relief for the working couples that can focus well on their own work without compromising on the responsibilities of parenthood. The workplace spaces furthermore have a great atmosphere with great aesthetics and interior decorating. These factors develop a un-cluttered and relaxed environment in these office spaces which alleviate the job stress that is certainly being often gone through by the professionals.
Trends in the co-working spaces expected in 2018 – These shared office spaces offer lots of cost benefits that is also in conjunction with the possibilities to network with all the other entrepreneurs operating from your same work area for achieving certain common goals. So, these shared offices are certainly here to keep and evolve in 2018. Regardless of the top potential that these shared office spaces have, there are also certain factors which can prove to be obstacles inside their rapid expansion. These factors include the following:
Stakeholders’ orthodox attitude- There are few property-owners who are not managed to comprehend the thought of coworking completely plus they are often found to stay wary with regards to the leasing of the real estate assets to the co-working operators. Because of absence of proper awareness, they feel that it must be safer to rent their properties for the traditional businesses. Also, this has been witnessed that India has certain faults inside the legal system which acts turn out to be deterrents for the co-working space operators to opt for judicial battles up against the landowners.
Agreements of exclusivity- According to the exclusivity agreement, only one co-working operator could be accommodated in just one specific building. This can lead to the non-optimal usage of space. Hence, there is a limitation exercised on the growth potential in the co-working space industry.
In spite of the aforementioned hindrances prevailing in the present times, the way forward for co-working is forecasted to be really bright from the skilled professionals after witnessing the increased 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 the top investors. The job culture is gradually evolving with all the more and more adoption in the co-working spaces. It comes with an average of 85% occupancy from 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. Sometimes, it is even higher depending on the nature of the business.
Professionals are from the view that co-working will probably be a dominant trend in India which is certain that it is not just an ephemeral style which will probably disappear like mullets and bell-bottom jeans. As per the observations, this really is being predicted by several experts that India delivers a fertile ground for that immense expansion of the co-working spaces. The reasons that make up the top demands of co-working spaces would be the booming ecosystem of startups and the large listing of flexibility linked to the co-working spaces.
Big investments are already in
India has been witnessing the demand for the co-working spaces not just from the startups and freelancers but also from your 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 anticipated from your big corporations.
In 2018, the specialists using this industry are predicting there might be a rise from 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 in the coworking operators and also cause the non-optimal utilization 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 may face a short-term setback in 2018.
The experts out of this industry are forecasting that the co-working spaces would soon get rid of the lease-based models that have certain restrictions attached to the same. They are likely to implement an exclusive ownership model that provides even 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 this future development of the co-working spaces is actually on the cards.