+
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
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code