Coworking spaces see unprecedented demand as companies opt for flexibility

Coworking spaces are already becoming extremely relevant in the post-pandemic era, not only for business owners and freelancers, as well as for big organisations. The adoption of the hybrid work model has resulted in an increase of coworking space demand. The businesses are now looking for flexible spaces, thus resulting in the opening of new opportunities in the segment.

Companies nowadays are acknowledging hybrid-work culture because they offer location versatility, simplified contractual arrangements and an easy entry-exit alternative. In the middle of such a change in demand, such spaces perfectly blend in.

According to Suren Goyal, partner, RPS Group, it would not be incorrect to predict that 2023 is going to be a pleasant year for the sector. He said that presently, more buyers are interested in investing in coworking spaces and therefore, more purchasing will occur in metropolitan and mid-level cities.

He said that coworking spaces are seeing unprecedented demand, adding that the occupancy rates have now shot up to 90-100 per cent, compared with 45-60 per cent a year ago.

"Coworking spaces in India are already in high demand following the global epidemic. The implementation of the hybrid prototype is driving businesses to seek out flexible spaces, which is creating new business opportunities in the sector. Businesses are starting to recognise the significance of a smart working space because it stimulates new approaches to work and tends to increase efficiency," Goyal said.

"As they embrace the coworking space culture, the young generation of entrepreneurs, linked by multinational enterprises and other mid-sized organisations, are reshaping the sector," he added.

Coworking will continue to reside since it appeals to both small and large businesses. This is because it can profit all businesses due to their being cost-effective, convenient and expandable. 

"Entrepreneurs are now considering flexible workspaces to be a wise investment because it enables them to concentrate on their activities and expansions while trimming frivolous spending. The demand for coworking spaces has already nearly doubled from post-Covid-19 levels and is expected to skyrocket in the coming years," he added.