Co-Working space set to take over the commercial segment

Trend in office space is rapidly changing globally and India is no exception. Since the past few years, India has begun to take cues from the emerging new workspace culture in the West. Co-Working is the new workspace model gaining traction worldwide not just limited to the entrepreneurs, start-ups and digital nomads but also attracting the corporates.

Co-working spaces recognize the value of flexibility, collaboration, community building, and shared resources.  Whether an independent contractor, a budding freelancer, a remote worker or the owner of a start-up, all must have come a long way from the most sought after venues to effectively run a business. Co-working space is a conducive and a great innovation that provides one with a reasonable workplace along with the shared environment suitable for collaboration & boosting productivity. Emerging millennial workforce is bound to incline towards the theme of collaborative workspaces helping them to set up a workstation completely hassle-free, less time consuming and at the preferred choice of location. The co-working spaces bring in value addition in terms of innovative multipurpose spaces, high networking with like-minded people, optimized productivity, efficient space utility, conducive work environment, attractive configurations, aesthetics and amenities to leverage upon a bigger picture. Co-Working spaces also offer a huge range of formats, such as virtual offices and shared living space. The workforce now has multiple options to work from where they want, when they want and how they want. This model has attracted to house individuals, successful entrepreneurs, and multi-billion corporations.

Over the past few years, the commercial segment in real estate has gained traction to become attractive to investors, the volumes being driven by end-users whether it also points towards India’s economy being on the fast track is a matter of opinion, but the commercial segment is definitely the rising star of Indian real estate. Among the new trends being witnessed in India’s real estate, co-working has logged up some interesting figures; by y end of June 2018, this segment has witnessed around 200 players, offering around 400 shared workspaces across India, according to a KPMG report released during a recent NAREDCO REIIS Summit 2018 in Mumbai The report says co-working spaces in April 2018 were 8 mn sq ft, and are projected to reach 10 mn sq ft by 2020. These are good numbers by any yard-stick, and statistical data and reports suggest that the future of co-working looks bright in India.

For Indian real estate, this is fast becoming a sunrise segment.  Recently, New York-headquartered collaborative workspace major WeWork’s India arm has picked up an entire commercial building, Zenia, spread over 12 floors, on lease in Hiranandani Estate, Thane. As a real estate developer, I see this as just the beginning – Hiranandani Estate already houses software major TCS’ Olympus Centre spread over 14.5 acres with 2 million sq ft of space. TCS Olympus Centre is a 16-storey commercial building with a technology center and can accommodate more than 30,000 employees. TCS has already started operations from this center last year. Now, if the requirement of Human Resources working in Thane for co-working spaces is taken into account, the requirement is huge.

Thane is just a representative of the growing segment of the commercial real estate, which we are seeing across India. With a slew of Infrastructure development initiatives, enhanced connectivity, and economic growth opportunities, Thane has experienced a comprehensive makeover. Apart from being a residential hub, now it’s moving up the rank as a commercial real estate hotspot.

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