As companies mandate return to office rules, demand for flexible workspaces is surging across major cities and tier 2 markets in India. Large enterprises, startups, and freelancers are increasingly opting for coworking and managed offices over traditional leases for their cost benefits and flexibility. Demand is coming up across sectors such as tech, IT/ITeS, professional services & consulting, health & pharma, manufacturing, food aggregators, BFSI, BPOs, GCCs, airlines and media. Major operators report 85-100% occupancy underscoring strong demand for these services. Experts attribute this trend to the ability of these workspaces to successfully fuse employee flexibility with cost benefits that bolster both individual and business performance in current market conditions.
Coworking and managed office spaces are booming due to the flexibility they offer employees and cost-effectiveness for employers. As companies tighten return-to-office rules, demand for flexible workspaces are soaring across major cities and tier-2 locations.
Large enterprises, IT/ITES, and Fortune 500 companies, apart from startups and solopreneurs are increasingly opting for such options, said coworking spaces including WeWork India, 91Springboard, Incuspaze, and Dextrus.
Demand is coming in across sectors as varied as tech, IT/ITeS, professional services & consulting, health & pharma, manufacturing, food aggregators, BFSI, BPOs, GCCs, airlines and media, with Welspun One, Harvard Business School, AdaniConneX, Kotak, RaboBank, JPMC and Nielsen among those opting for such spaces.
Operators report occupancy rates of 85-100%, underscoring the demand. As remote working declines, flexible workspaces are gaining traction in tier-2 cities due to satellite and back-office needs.
Incuspaze's CEO Sanjay Chaudhary notes queries grew 15% in early 2024 due to employers wanting proximity while cutting costs through flexible arrangements.
Unlike traditional leases with high rents and long commitments, flexible workspaces allow scaling space needs for optimal costs. Anshu Sarin of 91Springboard sees three customer categories - freelancers and nascent startups, mid-size firms, and large multinationals from industries beyond just IT and ITES like banking and manufacturing.
Dextrus, focused on premium offerings, maintains above 90% occupancy. CEO Robin Chhabra cites rising demand from warehousing, data centers, banking and more seeking convenience over full-time remote work.
WeWork India's member count rose 20% annually led by technology, professional services consulting, healthcare, manufacturing and finance clients. Over half are tech firms like Cimpress, Equinix and Fynd, says CEO Karan Virwani, anticipating further growth in the sector.
As Sanjay Chaudhary summarizes, these workspaces successfully fuse employee flexibility with cost benefits that bolster both individual and business performance in current market conditions. With the future of work firmly embracing hybrid models, the advantages of flexible workspaces in blending employee choice with cost optimization will ensure their continued success. Demand looks set to stay strong as the future of work evolves into a hybrid model.
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