During the first quarter of 2023, the co-working segment’s share saw a 27 per cent increase to 2.18 million sqfeet across top seven cities, according to ANAROCK.
Additionally, during this period, the net absorption of office space was recorded at 8.2 million sq feet. Data reveal that back in pre-pandemic Q1 2019, its share was just 14 per cent of a net office absorption of around 9.3 million sq ft.
In terms of overall growth in co-working demand, the top seven cities witnessed a 90 per cent growth in net absorption in this period, from 1.3 million sq ft in Q1 2019 to approximately 2.18 million sq ft in Q1 2023.
Among the top seven cities, Bengaluru and NCR together accounted for 66 per cent (around 1.43 million sq ft) of net coworking absorption in Q1 2023. While Pune and Chennai together stood at around 0.52 million sq ft of coworking space in the same period.
“Coworking space demand weakened considerably after Covid-19 disrupted the workplace equation across the country. We’re seeing a decisive reversal of this negative trend now, with coworking particularly attractive because of the disrupted IT/ITeS employment scenario,” said Utkarsh Kawatra, Senior Director-myHQ (ANAROCK Group).
Coworking spaces are shooting up in major cities with low Grade A office vacancy levels and higher demand from start-ups, freelancers, and corporates looking to expand. Besides start-ups and other businesses, many IT/ITeS companies also prefer flexible spaces over regular office spaces today, with a strong emphasis on workspace flexibility for employees.
The flexible office spaces allow firms to deploy instantly rather than having to contend with office layouts and fit-outs, at costs comparable to regular office spaces which also involve long lock-in periods.