by Santosh Sinha
The culture of the coworking space market has started getting more acceptance in the Indian market. Recently, coworking firm Oneculture has taken 1.06 lakh sq ft of office space from realty firm Bhutani Infra in its ‘Alphathum’ commercial project in Noida to open its fourth center comprising 1,600 seats. The co-working firm currently has two centers in Gurugram, Haryana with a total capacity of 1,300 seats and will open the third center in the city in November having 700 seats. It offers space in the range of Rs 12,000-22,000 per seat per month, a senior company official said.
In this week itself, in an effort to encourage the business environment for MSMEs and startups, Small Industries Development Bank of India (SIDBI) formed a partnership with Incuspaze Solutions Private Limited (Incuspaze) to open a first-of-its-kind coworking space exclusively designed for MSMEs and startups. Located adjacent to Connaught Place CBD on the Tolstoy Marg in Delhi, this coworking space is expected to give a much-desired boost to the MSME segment.
The coworking space market has shown a comparatively better potential than the other commercial segments in India in last 8-10 quarters. Apparently, the perception of the coworking space as a culture has changed dramatically and contrary to much anticipation, several leading enterprises and mainstream corporate firms have emerged as the biggest consumers of the coworking space, forming around 40–45 percent of the total demand in India.
Currently, WeWork, Regus, CoWrks, Awfis, Smartworks, OYO Workspace, GoodWorks, GoWork, Skootr, IndiQube, Avanta, 91 Springboard, Creator’s Gurukul, GoHive, Plus Offices and Spring House Coworking are major players in this segment. Recently, Thailand-based real estate firm MQDC also entered this space by taking on lease 22,000 sq ft from realty major DLF to start its first co-working center in the national capital.
Now, with more relaxed norms for the retail sector, the coworking space market is expected to double its growth by the year 2021. The government has relaxed the key aspects of the 30% local sourcing rule for foreign direct investment (FDI) in single-brand retail. This will certainly boost the inflow of FDI in the Indian market, creating a lucrative growth trajectory for the commercial real estate, and especially for the coworking space market.