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,What's driving the demand for coworking spaces in post-pandemic era: An insight
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What's driving the demand for coworking spaces in post-pandemic era: An insight
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Coworking spaces in India are in demand post-pandemic. The adoption of the hybrid work model is pushing businesses to look for flexible spaces, thus resulting in the opening of new opportunities in the segment.
Enterprises now recognise the need for a smart workspace as it encourages new ways of working and enhances efficiency. The new generation of entrepreneurs, joined by MNCs and other mid-sized businesses, are reshaping the segment as they are embracing the coworking spaces culture.
The flexible office spaces are now being considered to be a smart investment by businesses as it provides them with an advantage to focus on their operations and expansions and cut unnecessary expenses. Coworking spaces demand has already almost doubled from the pre-Covid-19 levels and is expected to grow manifold in the coming years.
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Nakul Mathur, MD, Avanta India, a leading service provider of fully equipped office and co-working spaces, sheds light on how the strong demand for coworking spaces in India has made the coworking spaces the most sought-after assets.
Demand from MNCs for coworking spaces is huge. What's the region?
MNCs, just like smaller businesses, want to remain agile in order to respond to changing conditions in the post-Covid era. Co-working spaces fit in very well in the midst of such a shift in demand. Co-working is here to stay as it attracts both small and large businesses. All businesses can benefit from co-working spaces because they are cost-effective, convenient, and scalable.
This allows you to either upsize or downsize. When new employees are hired, the number of desks can be increased, thereby optimising the overall CAPEX and OPEX. But the situation is not the same with traditional spaces where rental agreements are rigid, resulting in noticeable fluctuations in rates and exorbitant costs for setting up and running the space.
Acceptability of coworking spaces in the post-pandemic world?
Co-working spaces are becoming essential in the post-pandemic world, not just for entrepreneurs and freelancers, but also for larger corporations. Businesses are now accepting co-working spaces with a hybrid-work culture because coworking offers location flexibility, simplified agreements, and an easy entry-exit option.
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Role of coworking spaces in the growth of real estate industry?
Coworking will continue to be in high demand as it allows businesses in lowering their costs. The sector will continue to be critical in the recovery of real estate. Because of increased demand, the segment will offer higher ROIs, attracting a large number of investors, landlords, and developers. Institutional players will increasingly enter the space, drawn by its long-term potential, adding structure and organisation to the business.
What trends are currently visible in sector?
The new model accommodates the changing desires of the workforce by providing a more collaborative and open environment. Office layouts with a lot of open space and natural touch are likely to be popular in 2022. The offices will be properly aired, as the epidemic has moved the emphasis to social distance and a healthy work environment. Similarly, the use of sustainable materials such as bamboo, the installation of indoor plants, efficient air conditioning and so on will increase.
There will be a greater emphasis on new technology such as Artificial Intelligence (AI). According to the World Economic Forum's (WEF) prediction, workplace premises will be highly technologically advanced in the coming years. AI in the workplace will mostly be utilised for repetitive tasks, allowing people to focus on creativity, imagination, and strategic thinking.