The startup eco-sphere has been continually growing across all of the cities in India and regardless of 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 large number of startups are getting excited about cutting down on the operational costs of owning or renting meeting room New York. This cut down 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 offering 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. All of these extra amenities are making these offices even more popular. All of these amenities enhance the morale of the staffs very positively which eventually enhances productivity. The actual existence of the daycare facilities supplied by the trained staffs also brings an excellent relief towards the working couples who are able to focus well on the work without compromising on their own responsibilities of parenthood. Work spaces furthermore have a great atmosphere with great aesthetics and interior design. These factors produce a un-cluttered and relaxed environment within these office spaces which alleviate the job stress that is certainly being often felt by the pros.
Trends in the co-working spaces expected in 2018 – These shared office spaces offer plenty of cost savings which is in conjunction with the chances to network using the other entrepreneurs operating from the same work area for achieving certain common goals. So, these shared offices are certainly here to remain and evolve in 2018. Irrespective of the top potential these shared office spaces have, additionally, there are certain 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 that are not been able to comprehend the thought of coworking completely and they are often found to remain wary with regards to the leasing of real estate assets for the co-working operators. Due to insufficient proper awareness, they believe that it is far better to rent their properties to the traditional businesses. Also, it has been witnessed that India has certain faults within the legal system which acts turn out to be deterrents for that co-working space operators to go for judicial battles against the landowners.
Agreements of exclusivity- As per the exclusivity agreement, only one co-working operator could be accommodated in a single specific building. This leads to the non-optimal usage of space. Hence, there is a limitation exercised on the growth potential in the co-working space industry.
Despite the above hindrances prevailing in the present times, the way forward for 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 are definitely the hottest startups in India because they are receiving millions of investments through the top investors. The work culture is gradually evolving with the a lot more adoption of the co-working spaces. It comes with an average of 85% occupancy of the available co-working spaces in India at the present times. This has been shown that at least 20-25% of operational costs can be saved by adopting the co-working spaces. Sometimes, it is even higher depending on the nature of the business.
The experts are of the view that co-working will probably be a dominant trend in India and this 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 can be being predicted by a few experts that India provides a fertile ground for your immense expansion of the co-working spaces. The reasons that account for the high demands of co-working spaces are the booming ecosystem of startups and the large listing of flexibility attached to the co-working spaces.
Big investments happen to be in
India has been witnessing the demand for the co-working spaces not just from your startups and freelancers but also from your major business conglomerates and corporations. The expected funding in the co-working space provider companies is expected to be $400 million in 2018. 70% from the home business opportunity is anticipated from your big corporations.
In 2018, professionals out of this industry are predicting there might be a rise in the exclusivity agreements. This means there would certainly be one coworking space in a single building. This really is 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 therefore they may face a temporary setback in 2018.
The experts from this industry are forecasting the co-working spaces would soon get rid of the lease-based models which may have certain restrictions connected to the same. They are likely to implement a unique ownership model that offers even more flexibility in an even lesser price. The demand for co-working spaces are skyrocketing at the present times and it is a sign that this future expansion of the co-working spaces is actually on the cards.