Co-working spaces to triple in three years: Report

By NT Bureau Published on Jun 22, 2018 04:53 PM IST

Chennai: As demand for co-working spaces rises, overall commercial transactions is set to triple in the next three years, said a report released by real estate consultancy firm Kinght Frank.

The report quoting Statista Dossier says that the number of co-working spaces across the globe has grown by 3,050 per cent (from 600 centres to 18,900 centres) since 2010, while the number of people working in these facilities has exploded by close to 8,000 per cent, by growing from 21,000 seats to 1.7 million seats in the same period.

In India, there are close to 200 co-working players running an estimated 400 shared workspaces across the country, compared to 2010’s 30 such centres.

The report states that private equity players have also been looking to invest in co-working startups. The report also talks about challenges, and it says that despite the demand for co-working spaces, there are several challenges that have to be tackled; for instance changing the conventional mindset of a client who would want to book a meeting room based on the touch and feel factor rather than an app.

Data security and privacy are also impediments if corporates want to take up co-working spaces, it said.

While co-working companies accounted for just under 0.17 mn sq mt (1.8 mn sq ft) of the 3.81 mn sq mt (41 mn sq ft) annual commercial office space transactions volume, the expansion plans of major players and the increasing appetite for this format from occupiers, property owners and co-working operators should see annual transaction numbers triple from current levels over the next three years.

Currently, NCR, Mumbai and Bengaluru house most of the co-working stock in India followed by Pune and Kolkata, the report added.