Coworking segment remains sluggish

Hyderabad: Despite attractive cost advantage, Indian coworking segment fails to attract major multi-national companies (MNCs) the way it does in many European nations. Apart from flexible work environments and added facilities, the coworking spaces provide a substantial cost advantage over traditional office spaces across India's top cities. Rental savings amount to anywhere between six per cent and 33 per cent, observes Anarock in its latest report on emerging asset classes.

In Hyderabad and Chennai, the coworking rentals in Central Business District (CBD) areas are lower by 10 per cent and nine per cent respectively. In Hyderabad, coworking rentals in key office areas like Gachibowli, Madhapur, Manikonda and Kondapur are in the range of Rs5,000 - 8,000 per desk, as opposed to Rs6,000 - 9,000 per desk in traditional office spaces. In Europe, large corporates depend on coworking for expansion in both CBDs and suburban business districts.

Anuj Puri, chairman, Anarock Property Consultants, said: "On an average, coworking spaces offer a substantial price difference of 15 per cent over traditional spaces in the top cities. While Pune offers the maximum cost advantage of 33 per cent, Gurugram in NCR has the least at six per cent. While start-ups and budding entrepreneurs make a beeline to coworking spaces, large corporates remain wary of depending on them for their expansion. This trend is quite contrary to what is witnessed in developed European nations."

In Pune CBD areas (Laxmi Road, Camp, Bund Garden, Koregaon Park, Shivaji Nagar, etc.), average monthly rentals per coworking desk 33 per cent lower than conventional office spaces.

Coworking rentals in IT hub Bengaluru are 20 per cent lower and the other key areas include MG Road, Millers Road, Vittal Mallya Road, Residency Road, etc.

MMR coworking spaces come at 14 per cent lower rentals in key micro markets such as Ballard Estate, Colaba, Churchgate, Fort and Nariman Point. In Gurugram, flexible workspaces command six per cent lower monthly rentals - Rs9,000 - 14,000/desk - against Rs9,500 - 15,000/ desk in regular office space.

Individually, flexible workspaces in Pune offer the highest rental difference - as much as 33% against comparable spaces in traditional offices. The average monthly rental for coworking spaces in Pune's CBD areas like Laxmi Road, Camp, Bund Garden, Koregaon Park, and Shivaji Nagar hover between Rs 5,000 - 10,000 per desk as against Rs10,000 -12,500 per desk in traditional office spaces (assuming 100 sq. ft. per desk for conventional commercial office space).