The startup eco-sphere has been continually growing across all of the cities in India and despite the occasional lull, the many global giants at the office space industry have noticeably shown a large amount of interest in the co-working segment. A lot of startups are now getting excited about reducing on the operational costs of owning or renting office space New York. This cut down on the operational expenses is enabling the startups to invest more funds in the core business like increasing the production or retaining the talented employees by giving 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 make these offices even more popular. Each one of these amenities enhance the morale in the staffs very positively which eventually enhances productivity. The presence of the daycare facilities supplied by the trained staffs also brings a fantastic relief to the working couples who can focus well on the work without compromising on their own responsibilities of parenthood. The workplace spaces furthermore have a great atmosphere with great aesthetics and interior decorating. These factors produce a un-cluttered and relaxed environment during these office spaces which alleviate the task stress that is certainly being often gone through by the experts.
Trends inside the co-working spaces expected in 2018 – These shared office spaces offer plenty of financial savings which is in conjunction with the probabilities to network using the other entrepreneurs operating through the same work area for achieving certain common goals. So, these shared offices are definitely here to remain and evolve in 2018. No matter the high potential these shared office spaces have, additionally, there are certain factors which can be obstacles within their rapid expansion. These factors are the following:
Stakeholders’ orthodox attitude- There are few property-owners that are not been able to comprehend the concept of coworking completely plus they are often found to keep wary concerning the leasing of real estate assets for the co-working operators. Because of lack of proper awareness, they think that it is far better to rent out their properties to the traditional businesses. Also, it has been witnessed that India has certain faults within the legislation which acts end up being deterrents for the co-working space operators to choose judicial battles up against the landowners.
Agreements of exclusivity- As per the exclusivity agreement, just one single co-working operator may be accommodated in a single specific building. This may lead to the non-optimal use of space. Hence, there is a limitation exercised on the growth potential in the co-working space industry.
Despite the above hindrances prevailing within the present times, the way forward for co-working is forecasted to be very bright by the industry experts 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 countless investments from the top investors. The task culture is gradually evolving using the increasingly more adoption in the co-working spaces. There is an average of 85% occupancy from the available co-working spaces in India in the present times. This has been proven that at least 20-25% of operational costs may be saved by adopting the co-working spaces. Sometimes, it is actually even higher depending on the nature of the business.
The experts are in the view that co-working is going to be a dominant trend in India which is for sure that it is not only an ephemeral style which is probably going to fade away like mullets and bell-bottom jeans. According to the observations, this can be being predicted by several experts that India delivers a fertile ground for that immense development of the co-working spaces. The explanations that account for our prime demands of co-working spaces are the booming ecosystem of startups and the large list of flexibility connected to the co-working spaces.
Big investments already are in
India continues to be witnessing the interest in the co-working spaces not only through the startups and freelancers but in addition through the major business conglomerates and corporations. The expected funding within the co-working space provider companies is anticipated to become $400 million in 2018. 70% from the home business opportunity is predicted through the big corporations.
In 2018, the experts out of this industry are predicting there might be a rise from the exclusivity agreements. This would mean that there would certainly be one coworking space in a single building. This can be proving to temporarily dampen the current market from the coworking operators and also cause the non-optimal utilization of the amenities and space. You can find big btghzb like Cox & Kings, Sequoia and Paytm already dedicated to the coworking space market and so they may face a temporary setback in 2018.
Professionals using this industry are forecasting that the co-working spaces would soon eliminate the lease-based models that have certain restrictions attached to the same. They will likely implement an exclusive ownership model which offers even more flexibility in an even lesser price. The interest in co-working spaces are skyrocketing on the present times and this can be a sign that the future growth of the co-working spaces is obviously on the cards.