The demand for co-working spaces or shared offices is on the rise across the country and as per an estimate about 13 million people, equivalent to current population of India’s Silicon Valley Bengaluru, are expected to be working out of such offices by 2020.
It is the Asia Pacific region that is witnessing the fastest growth of demand for flexible offices including co-working spaces and serviced offices. In India, the growth of flexible office space is expected to grow at 40%-50% this year, showed a JLL India report. By the end of the year, flexible workplaces in India are expected to attract investment up to $400 million.
“In India, the co-working segment is expected to grow by 40-50% in 2018 alone. By the end of the year, we anticipate flexible workplaces would attract investment up to US$ 400 million. With over 200 premium business centers across the country, set to double by 2020, co-working spaces will reflect the global trend of being closer to 20% of total workspace,” said Sandeep Sethi - MD, Integrated Facilities Management West Asia, JLL.
He highlighted that rise of the millennials and a large and vibrant start-up ecosystem are the main factors contributing to this trend in India.
The potential market size of co-working across India is expected to be 13.5 million users by 2020 about half of which will be from enterprises, which are expected to take up 10.3 million seats. Freelancers and Small & Medium Enterprises (SMEs) are expected to contribute 1.5 million users worth of demand, while it is anticipated that startups will demand upto 100,000 seats by 2020, the report added.
JLL India further indicates that the top 6 cities in India will require an estimated 5 million seats in co-working spaces, while 8.5 million of the projected demand will be in tier 2 and 3 cities.