Coworking Market Size to Double Over Next 5 Years at 15% CAGR – CII-ANAROCK Report
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* Currently, approx. 35 Mn sq. ft. flexible office stock available across India of which approx. 71% (25 Mn sq. ft.) is by large operators
* pprox. 3.7 lakh flexi seats available across major Tier I & Tier II cities
* Both existing & new coworking players set to expand extensively
* In ANAROCK LinkedIn survey, 46% of respondents chose coworking spaces for adopting hybrid work model; 30% voted for the hub-and-spoke model, 24% for existing office layout changes
* 50% of respondents find work-life balance the top challenge for WFH, 90% feel organizations are hesitant to adopt remote working due to trust issues
Mumbai 3 December 2021: 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 coworking spaces over the next five years at a CAGR of 15%, reveals the latest CII-ANAROCK report
Currently, approx. 35 Mn sq. ft. of flexible office stock is available across the country. Of this, approx. 71% or 25 Mn sq. ft. is by the large operators. Approx. 3.7 lakh flexi seats are currently spread across the major Tier I and Tier II cities of India.
A survey conducted by ANAROCK via LinkedIn further validated the emergence of the hybrid work model as the future of Indian offices. 65% of respondents were convinced of the high potential of hybrid or remote working in India, while just 35% did not favour these models.
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 coworking revolution with several large players operating across the country. Not just existing coworking players but also new operators have major future expansion plans. For instance, coworking player Smartworks plans approx. 20 Mn sq. ft. of coworking space comprising approx. 2.5 lakh seats over the next 3-4 years.”
The rapid expansion plans by these major coworking players, and the pandemic-triggered need to re-strategize 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.
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