Almost 350 shared office operators are present in India, with majority of the players offering co-working and incubator spaces. These are spread across more than 800 locations, mainly present in the 'business center' and ' co-working space' format.
Leasing activity by co-working and business center operators more than tripled in 2016 as compared to 2014 to about 0.7 mn sq. ft., with 2017 alone expected to witness leasing of more than 1.5 million sq. ft.
Cost saving of at least 10 - 25% by leasing in a co-working space as compared to conventional leasing in the larger cities of Delhi, Gurgaon, Bangalore, Mumbai and Pune is envisaged.
As office rentals continue to inch up across India, the total space leased by co-working operators in tier I and tier II cities is expected to be almost 6 - 10 million sq. ft. by 2020.
Occupier focus on business operations over RE decisions, increasing occupier awareness of co-working as an alternate option, the rising acceptance of ‘remote’ working and an increased preference towards flexible leasing terms will be factors that will drive demand for co-working spaces in the times to come.