There are several reasons behind the rapid growth in the coworking industry. A significant part of this growth has to do with the Millenials, who currently hold around 46% of India’s workforce. They are also supposed to affect India’s working culture as India’s gig economy is heated.

India boasts on around 5200 startups, making it the third-largest startup ecosystem after China and the U.S. This means that startups are likely to share offices with other businesses. Moreover, given the advantages of higher flexibility and feasibility in setting up office space without any hassles, enterprises are opting for such areas as well.

As per developers, the required market for coworking spaces is enormous, with the need for more than 16 million seats and around 9 million square feet of area. 

The Prospect of Growth and Future Trends

• The Flexible workspace companies are transforming into managed space operators, where they are offering the entire centre to a single tenant, who is looking for some quality space with some flexibility. This trend is expected to grow in the future, as well.

• Apart from the top cities of Bengaluru, NCR, and Mumbai, operators are expected to widen their reach to Hyderabad, Chennai, and Pune.

• According to experts, after the current expansion stage-which is likely to last 2-3 years, the markets will see consolidation through mergers, and stake purchases by institutional investors.

• CBRE says that office rent is likely to move up in India in the next five years. The total space leased by co-working operators may rise to 10 million square feet by 2020.