The startup ecosystem is continuously growing across all major cities in India and, despite occasional slowdown, the world-class companies in the office space sector have noticed a significant enthusiasm for the co-working space. A majority of startups are looking to reducing the operational expenses of leasing or purchasing exclusive office space. This reduction in operational costs allows entrepreneurs to invest more money in their core business such as growing production or keeping employees who are talented by offering them attractive pay packages. Coworking spaces have become very popular due to the pay-as-you-use model that offers fair and clear prices for the various offered services. coworking space
Furthermore, these shared office spaces come with special amenities, like creche facilities, games areas gym, spa and sleeping pods. These additional amenities make these offices more sought-after. These amenities increase the morale of staff significantly, which in turn increases productivity. The existence of childcare facilities offered by the skilled staff also provides a immense relief to working couple who can concentrate effectively on their job without having to compromise their obligations of being parents. Office spaces also provide an amazing atmosphere that is complemented by great aesthetics and design. These elements create a calm and comfortable environment in these offices which helps to reduce the stress and stress which is often felt by professionals.coworking
The co-working industry is expected to evolve in 2018. anticipated in the year
These office spaces that are shared offer significant cost savings that are combined with the opportunity to meet other entrepreneurs working within the same space to achieve a set of common goals. These office spaces are sure to stay, and they will be evolving in the year 2018. In spite of the enormous potential these office spaces shared by multiple companies possess, there are some factors that may create obstacles to the rapid growth of these spaces. This includes the following:
* The orthodoxy of stakeholder attitudes- There are a few property owners who have not been able to comprehend what coworking is in full and are frequently found to be hesitant about the leasing of properties to co-working companies. Because of their lack of understanding, they think that it’s safer to rent their homes to traditional companies. In addition, it is a fact that India has a few flaws in the legal system , which could be an obstacle to co-working space operators to choose legal battles against owners of the land.
* Agreements of exclusivity – In accordance with the exclusivity contract the co-working company is the only one that can be housed in a particular building. This results in a non-optimal utilization of space. This is why there is a restriction on the potential growth of the co-working space market.
Despite the obstacles that are prevalent in these times the future of co-working is predicted to be promising by industry experts after observing the growing demand for co-working office.
Co-working offices
Co-working companies are among the top startups in India since they are getting millions of dollars in investment from most prominent investors. The culture of work is slowly changing with increasing use of co-working space. It is estimated that there is 85 percent occupancy in the co-working space spaces available in India currently. This is based on the fact that as little as 20-25% of the operational expenses could be reduced by utilizing co-working spaces. Sometimes, it’s much higher based what you are trying to achieve with your company.
Experts believe that co-working will become a major style in India and it is a fact that it’s not an occasional style that will fade away like bell-bottoms and mullets. Based on the data it is predicted by various experts who claim that India is a great place for the massive development of co-working space. The primary reasons for the high demand for co-working spaces include the expanding startup ecosystem and the plethora of possibilities that are available to co-working spaces.
The biggest investments are already being made
India is witnessing the increasing demand for co-working space, not only from freelancers and startups but also from large companies and conglomerates. The estimated funding of co-working space companies is anticipated at $400million by 2018. 70 percent of the business opportunity is expected to come from large companies.