Mumbai has the highest demand and potential for co-working spaces in the country, says a report from property consultancy firm Jones Lang LaSalle. It is followed by the National Capital Region and Bengaluru. The co-working segment in India is expected to receive $400 million in investments by 2018, it said. By the end of this year, the segment will grow by 40-50 per cent to reach over 1 million square feet.
Co-working refers to shared office spaces. In top cities like Delhi National Capital Region (NCR), Mumbai, Bengaluru and Pune, a co-working space is likely to lead to cost savings in the range of 20-25 per cent when compared with leasing a traditional office space, the study says. “With office rental costs continuing to rise across India’s business districts, the total space leased by co-working operators in the top cities could potentially stand at 7-9 million sqft by 2020,” said the study.
According to JLL, the potential market size for the co-working segment across India currently stands in the range of 12-16 million. Six big cities – Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad and Pune – approximately account for 5 million of this potential.
According to the study, Mumbai offers the highest business potential with a captive target of over a million people, followed closely by NCR. About half-a-million of demand originates from the three main southern cities of Bengaluru, Chennai and Hyderabad, along with Pune. The demand is mostly from large corporate enterprises (about 70 per cent), followed by emerging businesses (20 per cent). The rest is made up of demand from freelancers and start-ups.