The startup eco-sphere has been constantly growing across all of the cities in India and despite the occasional lull, the various global giants in the workplace space industry have noticeably shown a great deal 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 meeting room New York. This cut down on the operational expenses is enabling the startups to invest more funds in the core business like increasing the production or retaining the talented employees by giving them the desirable higher pay packages. The co-working spaces have become very popular because of the 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 like a food court, crèche services, gaming zones, spa, gym, sleeping pods etc. These all extra amenities have made these offices much more popular. All these amenities boost the morale from the staffs very positively which eventually enhances productivity. The existence of the daycare facilities provided by the trained staffs also brings an excellent relief to the working couples who can focus well on their own work without compromising on their own responsibilities of parenthood. Work spaces also have a great atmosphere with great aesthetics and interior decorating. These factors develop a un-cluttered and relaxed environment within these office spaces which alleviate the work stress that is certainly being often gone through by the experts.
Trends in the co-working spaces expected in 2018 – These shared office spaces offer plenty of cost savings which is along with the chances to network using 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. No matter our prime potential these shared office spaces have, additionally, there are certain things which can prove to be obstacles in their rapid expansion. These factors range from the following:
Stakeholders’ orthodox attitude- You will find few property-owners that are not been able to comprehend the idea of coworking completely and they are often found to remain wary concerning the leasing of the real estate assets to the co-working operators. Due to lack of proper awareness, they think that it is safer to rent out their properties for the traditional businesses. Also, this has been witnessed that India has certain faults inside the legislation which acts end up being deterrents for that co-working space operators to opt for judicial battles up against the landowners.
Agreements of exclusivity- According to the exclusivity agreement, just one co-working operator can be accommodated in one specific building. This leads to the non-optimal use of space. Hence, you will find a limitation exercised on the growth potential in the co-working space industry.
Despite the above hindrances prevailing in the present times, the way forward for co-working is forecasted to be very bright from the skilled professionals after witnessing the improved 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 because they are receiving countless investments through the top investors. The task culture is gradually evolving with all the increasingly more adoption in the co-working spaces. It comes with an average of 85% occupancy from the available co-working spaces in India in the present times. This has been shown that no less than 20-25% of operational costs can be saved by adopting the co-working spaces. At times, it is even higher depending on the nature of the business.
The experts are of the view that co-working will probably be a dominant trend in India and also this is definite that it is not only an ephemeral style which is probably going to fade like mullets and bell-bottom jeans. As per the observations, this is being predicted by several experts that India delivers a fertile ground for that immense growth of the co-working spaces. The explanations that take into account the top demands of co-working spaces are definitely the booming ecosystem of startups and the large listing of flexibility connected to the co-working spaces.
Big investments are already in
India has been witnessing the interest in the co-working spaces not merely from your 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 be $400 million in 2018. 70% of the home business opportunity is anticipated through the big corporations.
In 2018, the experts out of this industry are predicting there might be a rise of the exclusivity agreements. This means there would just be one coworking space in a single building. This is proving to temporarily dampen the marketplace in the coworking operators as well as result in the non-optimal usage of the amenities and space. You can find big btghzb like Cox & Kings, Sequoia and Paytm already invested in the coworking space market and thus they may face a short-term setback in 2018.
Professionals from this industry are forecasting the co-working spaces would soon do away with the lease-based models which may have certain restrictions linked to the same. They will likely implement an exclusive ownership model which offers even more flexibility with an even lesser price. The need for co-working spaces are skyrocketing at the present times and it is a sign that this future expansion of the co-working spaces is undoubtedly on the cards.