Coworking space is revolutionizing the commercial real estate space and cities such as Hyderabad are at the forefront of this phenomenon. Experts say that the co-working space segment will grow multifold in the coming years serving not only startups but also SMEs and large MNCs that look out for quality and a flexible workspace. In the coming years, Hyderabad could take a lead in co-working space as Bengaluru will become less attractive because of cost and other parameters, experts say.
Sharing trends in Hyderabad, SreenivasTirdhala, managing director, iSprout Business Centre, told Telangana Today, “We are seeing a trend where new commercial buildings that are built in Hyderabad are significantly occupied by co-workings space companies. State governments can utilize this new opportunity in realty space in attracting companies enabling quicker plug and play. Hyderabad will be the first choice for companies in the south as Bengaluru is saturating.
Companies with three-member teams can operate in co-working spaces with just Rs 25,000 per month, taking advantage of connected locations, Grade-A quality office space in addition to several amenities that are provided.”
Research studies indicate that the share of co-working spaces in overall commercial realty space will go up to over 20 per cent by mid-2020 from three per cent few years ago.
All the co-working companies are showing growth signs consistently and are attracting investors’ interest. Companies such as the HSBC and Microsoft have taken space in these centres. So, it is not just startups that are looking at co-working spaces but MNCs too. Though competition is growing, market is also opening up.
Industry experts believe that large size mergers and acquisitions will happen in the next 2-3 years. Unspecialized and generic players will cease to exist.
According to Anshuman Magazine, chairman, India & South East Asia, CBRE, “Corporate real estate in India is transforming, with focus on strategic models, technology and workplace innovation. Occupier intention of expanding office portfolios highlights the changing landscape in the operating business environment. The priority also lies in balancing today’s requirement for efficient and experiential workspaces with that of the industry’s future expectations.