Currently , there are 61 co-working spaces in India, of which 16 were set up in 2016, according to data tracking firm Tracxn. In Mumbai, Lower Parel and Andheri are the hotspots for co-working spaces, and witnessing good demand from corporates. In Bangalore Sarjapur Outer Ring Road and Old Madras road are seeing such hubs.
Sidharth Menda, CEO, Cowrks, said, “By opting for a co-working space, an outfit with 50 people, can save up to 30% in costs. Businesses small and big have begun making the switch to co-working facility not only because of effective pricing and flexibility , but also because they realise it is a much better way of working.”
According to international property consultancy firm CBRE, global average utilisation of assigned seats is 60% (excluding vacant seats).Global average of meeting room utilisation is just 30%.
Given the huge potential in India, global co-working giants such as WeWork and Spaces are expected to enter Mumbai soon. Numerous other international players are also showing keen interests in setting up co-working office facilities in the country, said industry observers.
Co-working spaces are a big draw with startups. They offer flexible working options at affordable prices. While some allow rent-free period to tenants, apart from utilities and an office look-and-feel to potential startups, there are those that serve as incubation centres, said global real estate consultant JLL.
Ram Chandnani, managing director advisory & transaction services at CBRE South Asia, attributes this trend to lower leasing and financial risk. “Co-working spaces lower overhead costs by limiting the amount of separate, dedicated space a business needs to lease. Many large corporates are moving to co-working space even as they build their new campuses,” he added.
Awfis Space Solution, a co-wokring companies jointly owned by Amit Ramani and banker Rana Kapoor’s entrepreneur daughter Radha Kapoor is going a step ahead by converting under-utilised spaces into work stations. For example, Awfis converted its industrial mill in Lower Parel into a premium co-working space. At Powai, it converted under-utilised space at a shopping centre into the most sought after co-working spot.
“Large corporates account for 25% of our current occupancy . We are looking at non-conventional building that can be converted into co-working space,” said Amit Ramani, founder and CEO Awfis Space Solution.
Source – The Economic Times (Delhi)