Demand for flexible office spaces has hit new high post the pandemic, with major companies and businesses including startups now opting for co-working.
Data put out by real estate consultant Anarock reveals that out of net absorption of approximately 20.8 million square feet. across the top 7 cities in January-June 2022, the share of co-working spaces stood at 20 per cent. During the same period in 2021, its share was just 6 per cent of net office absorption of a total of 9.33 million square feet.
Bengaluru, Hyderabad and Chennai together witnessed net office absorption of approx. 12.2 million square feet. Of this, 18 per cent was coworking. Mumbai and Pune saw net absorption of nearly 5.45 m sq ft, of which 27 per cent was co-working. Delhi NCR stood at approx. 2.75 mn sq ft and 15 per cent was co-working.
In contrast, the share of the IT/ITeS sector - India's leading office demand driver - declined from 49 per cent in the first half of 2021 to 36 per cent in 2022, the real estate consultant said.
{{/usCountry}}In contrast, the share of the IT/ITeS sector - India's leading office demand driver - declined from 49 per cent in the first half of 2021 to 36 per cent in 2022, the real estate consultant said.
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This decline was largely because many IT companies are now preferring flexible spaces to regular office spaces, the consultant said in a statement.
"Coworking has received a major boost after Covid-19 disrupted the previous status quo. A major factor driving demand is that these spaces are not concentrated in just the city centres or major employment hubs; they're spread across different areas, including the housing-intense suburbs," said Anuj Puri, Chairman at ANAROCK Group.
"Coworking spaces are now also operating out of malls and hotels across cities. Many large office parks also house coworking spaces. This helps companies to remain closer to their employees and offer them flexibility."
Further, it argued that the lock-in period for taking up a regular office space is anywhere between 3-4 years, which also helps in boosting the demand for co-working spaces.