Co-working Spaces To Continue Momentum In 2018

The momentum gained by co-working spaces in 2017 is likely to continue this year as well as large corporates look at consolidating businesses to maximise their productivity, says experts. Co-working, also known as alternative workspaces, is recognised as a style of working as well as refers to the physical space where such a sharing community exists.

The co-working concept is not new but it has seen around the globe in the past several years as it is essentially the private sector's response to meet today's activity-based work requirements. According to a study by property consultant Jones lang LaSalle, co-working is expected to receive investments worth $ 400 million by 2018. The potential market size for the segment across the country currently stands in the range of 12-16 million seats.

Ramesh Nair, JLL India CEO and country head, said."The demand for co-working spaces is no longer only limited to freelancers or start-up employees. The staff at small emerging businesses as well as large corporate offices is also looking to co-working spaces to maximise their productivity,"

While freelancers are primarily focussed on the cost factor, start-ups and small and medium-sized enterprises (SMEs) focus on cost as well as infrastructure. For large corporate firms, on the other hand, travel convenience is a high priority, and hence the prime office location is important as is infrastructure, he said.

Knight Frank India chief economist and national research director Samantak Das said "In 2018, the shrinking availability of quality-leased office assets coupled with yields reaching historic lows will push investors to look at alternative segments like ret ail and warehousing. On the other hand, signing built to suit deals will become imminent for office occupiers."