Co-working market size to double over next 5 years

Hyderabad: Flexible workspaces are the preferred way to adopt the hybrid work model in a post-pandemic world, compared to options like changing existing office layouts or the hub-and-spoke model. This, among other factors, will potentially double the market size of co-working spaces over the next five years at a compound annual growth rate (CAGR) of 15 per cent, as per a latest report.

Industry body CII and real estate consultancy Anarock has come up with a report 'Workplaces of the Future.' According to it, around 35 million sft of flexible office stock is available across the country. Of this, 71 per cent or 25 million sft is by the large operators. About 3.7 lakh flexi seats are currently spread across the major tier-I and tier-II cities of India. Anuj Puri, Chairman - Anarock Group & Chairman - CII Roundtable on Future Workplaces, says: "A work-from-anywhere future requires significant preparations and technological support. On the other hand, the hybrid work model benefits both employers and employees - including via cost savings which by themselves justify taking the hybrid model very seriously."

"India is at the cusp of a co-working revolution with several large players operating across the country. Not just existing co-working players but also new operators have major future expansion plans. For instance, co-working player Smartworks plans 20 million sft of co-working space comprising 2.5 lakh seats over the next 3-4 years."

The rapid expansion plans by these major co-working players, and the pandemic-triggered need to re-strategise workspaces, indicate a bright future for this new asset class. Companies returning to offices will have to consider leveraging flexi spaces to reduce cost and expenditure, and this will boost the demand for such spaces. Along with the report, a survey was also conducted by Anarock via LinkedIn that validates the emergence of the hybrid work model as the future of Indian offices. Around 65 per cent of respondents were convinced of the high potential of hybrid or remote working in India, while just 35 per cent did not favour these models. As per the survey, at least 54 per cent of respondents favour a hybrid model wherein they work from the office for a few days and the remaining from home. In contrast, 33 per cent prefer working entirely from the office, and only 13 per cent consider working from home suitable, owing to smaller apartment sizes and larger families.