The startup eco-sphere has been constantly growing across all of the cities in India and inspite of the occasional lull, the various global giants at the office space industry have noticeably shown a considerable amount of interest in the co-working segment. A lot of startups are now getting excited about reducing on the operational costs of owning or renting workspace New York. This cut down 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 are becoming highly 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 just like a food court, crèche services, gaming zones, spa, gym, sleeping pods etc. These all extra amenities make these offices much more popular. All of these amenities increase the morale in the staffs very positively which eventually enhances productivity. The presence of the daycare facilities provided by the trained staffs also brings an excellent relief to the working couples that can focus well on their own work without compromising on the responsibilities of parenthood. The office spaces also have a great atmosphere with great aesthetics and home design. These factors produce a un-cluttered and relaxed environment within these office spaces which alleviate the job stress that is certainly being often experienced by the professionals.
Trends inside the co-working spaces expected in 2018 – These shared office spaces offer lots of cost savings which is also in conjunction with the possibilities to network using the other entrepreneurs operating from your same work space for achieving certain common goals. So, these shared offices are definitely here to remain and evolve in 2018. No matter the top potential that these shared office spaces have, additionally, there are certain things 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 that are not managed to understand the idea of coworking completely and they are often found to keep wary concerning the leasing of real estate assets for the co-working operators. Because of absence of proper awareness, they think that it must be safer to rent their properties for the traditional businesses. Also, it has been witnessed that India has certain faults in the legal system which acts prove to be deterrents for that co-working space operators to opt for judicial battles from the landowners.
Agreements of exclusivity- As per the exclusivity agreement, only one co-working operator could be accommodated in just one specific building. This leads to the non-optimal use of space. Hence, there exists a limitation exercised on the growth potential of the co-working space industry.
Despite the above hindrances prevailing within the present times, the future of co-working is forecasted to be very bright from the skilled professionals after witnessing the increased demand for the co-working offices.
Future growth expectations of co-working offices – The co-working operating companies are the hottest startups in India as they are receiving countless investments from the top investors. The work culture is gradually evolving with the a lot more adoption of the co-working spaces. There is an average of 85% occupancy from the available co-working spaces in India in the present times. This has been confirmed that no less than 20-25% of operational costs could be saved by adopting the co-working spaces. At times, it really is even higher depending on the nature of your own business.
The specialists are in the view that co-working will 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. According to the observations, this is being predicted by a few experts that India offers a fertile ground for your immense expansion of the co-working spaces. The reasons that take into account the top demands of co-working spaces would be the booming ecosystem of startups and also the large listing of flexibility attached to the co-working spaces.
Big investments are already in
India has become witnessing the need for the co-working spaces not just through the startups and freelancers but also through the major business conglomerates and corporations. The expected funding inside the co-working space provider companies is predicted to get $400 million in 2018. 70% from the business opportunity is expected through the big corporations.
In 2018, the experts from this industry are predicting there will 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 in the coworking operators as well as lead to the non-optimal use of the amenities and space. There are big btghzb like Cox & Kings, Sequoia and Paytm already committed to the coworking space market and therefore they might face a short-term setback in 2018.
Professionals out of this industry are forecasting the co-working spaces would soon do away with the lease-based models which have certain restrictions connected to the same. They are likely to implement an exclusive ownership model that offers a lot more flexibility in an even lesser price. The demand for co-working spaces are skyrocketing on the present times and this is a sign that the future growth of the co-working spaces is actually on the cards.