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India's Co-Working Office Spaces Demand Surges 233% in H1 2022

 

September 16, 2022 (Investorideas.com Newswire) A MoneyTransfers H1 2022 data presentation shows that co-working spaces constituted 20% of India's roughly 21M square feet of office space. That represented a 233% surge from the 6% share it had in H1 2021.

Jonathan Merry, CEO of MoneyTransfers, has been studying the data and concludes that co-working spaces are the future of office spaces in India.

Merry holds, "What we're seeing is a dramatic shift in how people want to work." He adds, "There's a growing preference for co-working spaces over traditional office spaces, and we believe this trend will only continue. This shift has major implications for how businesses operate in India, and businesses and workers should evolve to take advantage of it."

What's Pushing India's Demand For Co-working Spaces?

Merry attributed the rise in the demand for co-working spaces to the waning popularity of the traditional 9-5 working model. With the rise of the internet and mobile technologies, people can now work from anywhere at any time.

Secondly, the co-working spaces provide a more collaborative and creative environment than traditional office spaces. Merry explained that co-working spaces promote networking and knowledge sharing, which helps to stimulate innovation.

Lastly, the CEO noted that co-working spaces are becoming popular due to the country's burgeoning startup ecosystem. He said these spaces provide startups with affordable and convenient options for setting up their operations.

Mapping India's Co-working Spaces

Bengaluru, Hyderabad and Chennai are some of the top cities that have seen a surge in co-working office spaces. They have collectively realized a net office absorption of roughly 12 million square feet. Co-working players accounted for 18% or approximately  2.23 million square feet of this space.

The Mumbai Metropolitan Region and Pune contributed nearly 5.45 million square feet of office space, and 27% of that was by co-working players. Meanwhile, co-workers occupied 15% of the approximately 2.75 million square feet of office space in the National Capital Region.

According to Anuj Puri, Chairman of ANAROCK Group, one of the key factors driving demand is that co-working spaces are not centralized in urban centres or primary employment nuclei. Instead, they fan out across different areas, including the highly populated suburbs.

Additionally, some malls and hotels are providing co-working spaces now. With the concept becoming increasingly popular, we will likely see even more co-working spaces soon. Full story and statistics can be found here: India's Co-Working Office Spaces Demand Surges 233% in H1 2022

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