“The Flexible Workspace Market in India has
been growing at a robust pace with presence of more than 300 Operators,
operating a total of more than 900 Co-Working Locations”
Expansion in Tier 2 and Tier 3 Cities: Companies
are focusing on expanding in cities such as Indore, Bhubaneswar, Calcutta,
Chandigarh, Kochi, Lucknow and others. For instance, Incuspaze has centres in
Indore, Kochi, Lucknow and Trivandrum, Regus has expanded in Indore,
Visakhapatnam, Kolkata, Jaipur and Chandigarh and Awfis has recently launched a centre in Chandigarh and is looking
to expand into cities such as Jaipur, Kochi, Indore and Bhubaneswar by 2021,
while simultaneously strengthening its position in tier I cities.
Increasing Average Deal Size: Flexible workspace operators are
taking over medium (centres with size between 20,000 sq ft to 100,000 sq ft)
and large sized centres (centres with size >100,000 sq ft) with increasing
demand from large enterprises and to control management and operating cost of
multiple centres. For instance, Smartworks has leased 0.5 million sq ft in Pune
in order to build a flexible workspace which will be operational from 2021 and
WeWork’s centre in Mumbai which is known as Chromium is build on 285,000 sq ft
of land area.
Evolving Business Model: In order to bring profitability and sustainability in
business flexible workspace operators are changing their operating model from
long term lease model to revenue sharing partnership with landlords and
management partnership. For instance, Awfis has introduced Managed Aggregation
Model (MAM) and Awfis Enterprise Solution (AES). Under our MA model, it ties up
with landlords of underutilized commercial spaces and shares the revenue with
landowners.
Rising Real Estate Cost: Real estate costs are second highest expenditure of the
companies after employee wage. Companies are eager to implement flexible office
ICT solutions to utilize their existing workspace more efficiently, rather than
increasing real estate space, which is a much larger expenditure. Real estate
prices in Delhi CBD, Bangalore CBD and Mumbai CBD have increased by 77.1%,
60.0% and 40.0% respectively in 2019.
The
report titled “India Flexible Workspace Market Outlook to 2025- By
Type (Hybrid Spaces, Serviced Spaces and Co-Working Spaces), By City
(Bangalore, Mumbai, Delhi NCR, Pune and Hyderabad) and By End Users
(Enterprises, MSME’s/Start-Ups and Entrepreneurs/Freelancers)”
by Ken Research (Online Market Research) suggested that the India Flexible
Workspace Market has been increasing due to emerging domestic and foreign
operators, increasing number of using
flexible workspaces, government initiatives to boosts start-ups, development of
co-working spaces outside office building, increasing rents of commercial
office and expansion in peripheral regions. The market has registered CAGR of
31.4% and 39.4% on the basis of supply and demand respectively during the
period 2016-2019.
Key Segments Covered:-
By Type of Flexible Workspace
Serviced
Spaces
Hybrid
Spaces
Co-Working
Spaces
By City
Bangalore
Delhi
NCR
Mumbai
Pune
Hyderabad
By End Users
Enterprises
MSME’s/Start
Ups
Entrepreneurs/Freelancers
Key Target Audience:-
Flexible
Workspace Operators
Office
Brokers/Aggregators
Commercial
Real Estate Companies
Venture
Capitalist and PE Firms
Real
Estate Consultant
Office
Furniture Providers
ICT
Providers
Time Period Captured in the Report:-
Historical Period – 2016-2019
Forecast Period –
2019-2025F
Companies Covered in the Report:-
Flexible Workspace Operators
Regus
WeWork
Awfis
Space Solutions
IndiQube
Smartworks
91Springboard
The
Executive Centre
Innov8
Vatika Business Centre & Co-working Spaces
InstaOffice
For More Information, refer to below link:-
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
No comments:
Post a Comment