The startup eco-sphere has been continually growing across all of the cities in India and inspite of the occasional lull, the various global giants in the office space industry have noticeably shown a large 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 workspace New York. This reduce 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 have grown to be very popular as a result of 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 are making these offices much more popular. Each one of these amenities increase the morale from the staffs very positively which eventually enhances productivity. The presence of the daycare facilities provided by the trained staffs also brings a fantastic relief towards the working couples who are able to focus well on the work without compromising on their responsibilities of parenthood. Work spaces furthermore have a great atmosphere with great aesthetics and interior design. These factors develop a un-cluttered and relaxed environment within these office spaces which alleviate the task stress that is being often experienced by the pros.
Trends within the co-working spaces expected in 2018 – These shared office spaces offer a lot of financial savings that is also along with the chances to network with the other entrepreneurs operating from the same work space for achieving certain common goals. So, these shared offices are definitely here to remain and evolve in 2018. Regardless of the high potential that these shared office spaces have, there are also certain factors which can prove to be obstacles inside their rapid expansion. These factors range from the following:
Stakeholders’ orthodox attitude- You can find few property-owners who definitely are not been able to know the concept of coworking completely and they are often found to keep wary with regards to the leasing of real estate assets for the co-working operators. Due to 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 end up being deterrents for your co-working space operators to go for judicial battles from the landowners.
Agreements of exclusivity- According to the exclusivity agreement, only one co-working operator may be accommodated in a single specific building. This can lead to the non-optimal utilization of space. Hence, there is a limitation exercised on the growth potential from the co-working space industry.
Regardless of the above hindrances prevailing within the present times, the way forward for co-working is forecasted to be very bright by the skilled professionals after witnessing the increased interest in the co-working offices.
Future growth expectations of co-working offices – The co-working operating companies are definitely the hottest startups in India as they are receiving millions of investments from your top investors. The work culture is gradually evolving with all the increasingly more adoption from the co-working spaces. It comes with an average of 85% occupancy from the available co-working spaces in India on the present times. This has been proven that no less than 20-25% of operational costs may be saved by adopting the co-working spaces. Sometimes, it really is even higher depending on the nature of your own business.
The experts are in the view that co-working will be a dominant trend in India which is for sure that it is not only an ephemeral style which is probably going to fade like mullets and bell-bottom jeans. Depending on the observations, this is being predicted by a few experts that India provides a fertile ground for your immense expansion of the co-working spaces. The reasons that take into account the high demands of co-working spaces are definitely the booming ecosystem of startups as well as the large list of flexibility attached to the co-working spaces.
Big investments are already in
India has become witnessing the interest in the co-working spaces not only through the startups and freelancers but also from the major business conglomerates and corporations. The expected funding within the co-working space provider companies is anticipated to get $400 million in 2018. 70% from the online business opportunity is predicted from the big corporations.
In 2018, the experts out of this industry are predicting there might be a rise of the exclusivity agreements. This would mean that there would likely be one coworking space in a single building. This is proving to temporarily dampen the marketplace of the coworking operators and also cause the non-optimal utilization of the amenities and space. There are big btghzb like Cox & Kings, Sequoia and Paytm already committed to the coworking space market and thus they might face a short-term setback in 2018.
Professionals from this industry are forecasting the co-working spaces would soon eliminate the lease-based models which have certain restrictions linked to the same. They will likely implement an exclusive ownership model that provides much more flexibility at an even lesser price. The demand for co-working spaces are skyrocketing at the present times and this can be a sign that the future development of the co-working spaces is obviously on the cards.