The startup eco-sphere has been continually 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 large amount of interest in the co-working segment. A lot of startups are getting excited about 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 spend more funds within the core business like increasing the production or retaining the talented employees by providing them the desirable higher pay packages. The co-working spaces are becoming very popular as a result of 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 are making these offices a lot more popular. All these amenities increase the morale in the staffs very positively which eventually enhances productivity. The presence of the daycare facilities offered by the trained staffs also brings an excellent relief towards the working couples who can focus well on the work without compromising on their own responsibilities of parenthood. The office spaces furthermore have a great atmosphere with great aesthetics and home design. These factors produce a un-cluttered and relaxed environment in these office spaces which alleviate the job stress that is certainly being often felt by the pros.
Trends inside the co-working spaces expected in 2018 – These shared office spaces offer plenty of financial savings which is coupled with the probabilities to network using the other entrepreneurs operating from the same work area for achieving certain common goals. So, these shared offices are definitely here to remain and evolve in 2018. Regardless of our prime potential that these shared office spaces have, additionally, there are specific factors which can be obstacles inside their rapid expansion. These factors are the following:
Stakeholders’ orthodox attitude- You can find few property-owners who definitely are not managed to know the concept of coworking completely and they are generally often found to stay wary concerning the leasing of the real estate assets to the co-working operators. As a result of lack of proper awareness, they feel that it must be far better to rent their properties for the traditional businesses. Also, it has been witnessed that India has certain faults within the legal system which acts end up being deterrents for the co-working space operators to choose judicial battles against the landowners.
Agreements of exclusivity- As per the exclusivity agreement, just one single co-working operator could be accommodated in one specific building. This can lead to the non-optimal use of space. Hence, there exists a limitation exercised on the growth potential from the co-working space industry.
In spite of the above mentioned hindrances prevailing within the present times, the way forward for co-working is forecasted to be very bright through the skilled professionals after witnessing the increased 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 as they are receiving millions of investments from your top investors. The task culture is gradually evolving with 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 confirmed that a minimum of 20-25% of operational costs could be saved by adopting the co-working spaces. At times, it is actually even higher depending on the nature of your business.
The experts are from 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 will probably disappear like mullets and bell-bottom jeans. According to the observations, this really is being predicted by several experts that India provides a fertile ground for that immense growth of the co-working spaces. The reasons that make up the high demands of co-working spaces are definitely the booming ecosystem of startups and also the large list of flexibility attached to the co-working spaces.
Big investments happen to be in
India has become witnessing the need for the co-working spaces not merely through the startups and freelancers but in addition from your major business conglomerates and corporations. The expected funding inside the co-working space provider companies is predicted to get $400 million in 2018. 70% of the business opportunity is predicted through the big corporations.
In 2018, the experts out of this industry are predicting there will be a rise from the exclusivity agreements. This means there would likely be one coworking space in a single building. This really is proving to temporarily dampen the market from the coworking operators and in addition result in the non-optimal use 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 temporary setback in 2018.
The specialists from this industry are forecasting that this co-working spaces would soon get rid of the lease-based models which have certain restrictions connected to the same. They are likely to implement a unique ownership model which offers a lot more flexibility in an even lesser price. The demand for co-working spaces are skyrocketing in the present times and this is a sign the future expansion of the co-working spaces is undoubtedly on the cards.