+
Flexible workspaces in India expected to rise to 10 mn sq ft by 2020
Equipment

Flexible workspaces in India expected to rise to 10 mn sq ft by 2020

With co-working demand continuing to grow across cities, flexible workspaces in India are expected to rise to about 10 million sq ft, with as many as 13 million people expected to work out of co-working centres by 2020.

Tier-II cities alone are estimated to grow to 8.5 million seats by 2020. Of the 13 million, 10.3 million seats are expected to be used by enterprises, 1.5 million seats by SMEs and 100,000 seats by start-ups. According to CBRE, many corporates are also expected to allocate 10 per cent of their office portfolio to agile workspaces. Further, the industry is expected to reach a valuation of $2.2billion by 2022, which sets the tone for a shift in the entire commercial real-estate sector in India. 

Having said that, globally, maintaining occupancy levels is the most challenging task for a co-working operator and the Indian market will be no exception. Other challenges co-working operators can encounter, in the view of Neetish Sarda, Founder, Smartworks, include the cost of development and operations, too many players in the market leading to saturation, and waning demand.

And so, a consolidation among co-working operators seems likely. “What is interesting, however, is the huge economic value the sector portends for the future,” says Harsh Lambah, Country Manager-India, IWG Plc. A recent IWG report predicts that India will see the greatest gross value add (GVA) increase from flexible workspaces, potentially an increase of 141 per cent, which equates to $375.8 billion, by 2030. The future, as they say, is bright!

SERAPHINA D’SOUZA

With co-working demand continuing to grow across cities, flexible workspaces in India are expected to rise to about 10 million sq ft, with as many as 13 million people expected to work out of co-working centres by 2020.Tier-II cities alone are estimated to grow to 8.5 million seats by 2020. Of the 13 million, 10.3 million seats are expected to be used by enterprises, 1.5 million seats by SMEs and 100,000 seats by start-ups. According to CBRE, many corporates are also expected to allocate 10 per cent of their office portfolio to agile workspaces. Further, the industry is expected to reach a valuation of $2.2billion by 2022, which sets the tone for a shift in the entire commercial real-estate sector in India. Having said that, globally, maintaining occupancy levels is the most challenging task for a co-working operator and the Indian market will be no exception. Other challenges co-working operators can encounter, in the view of Neetish Sarda, Founder, Smartworks, include the cost of development and operations, too many players in the market leading to saturation, and waning demand.And so, a consolidation among co-working operators seems likely. “What is interesting, however, is the huge economic value the sector portends for the future,” says Harsh Lambah, Country Manager-India, IWG Plc. A recent IWG report predicts that India will see the greatest gross value add (GVA) increase from flexible workspaces, potentially an increase of 141 per cent, which equates to $375.8 billion, by 2030. The future, as they say, is bright!SERAPHINA D’SOUZA

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code