“Growth of co-living & co-working spaces in India” By C J Singh, COO, Wave City.
Gig economy has transformed how modern Indians live and work. The pandemic unleashed a series of organizational changes across the world which included flexible working hours and working from anywhere.And,
As co-living and co-working segments offer premium office and residential spaces on a pay-as-you-use basis, the democratization of real estate is taking place, attracting institutional and retail investors’ attention.
According to a report by Cushman and Wakefield India, the co-living market in India is anticipated to grow at a compound annual growth rate of 17% from 2020 to 2025, reaching a value of USD 40 billion by 2025. On the work front, Delhi-NCR region, Mumbai, Bangalore, Tier 2 and 3 cities and a host of other Indian cities are giving a thumbs-up to the concept of co-working spaces. In fact, the statistics are also quite encouraging: The Indian co-working space market is projected to reach USD 1.53 Billion in FY2031, growing at a CAGR of 13.47% during the forecast period FY2024-FY2031. These are the findings of a report by Markets and Data.
What’s driving this change? Start-up explosion, young professionals looking for affordable working and living spaces, on-ground facilities like high speed internet, meeting rooms & an opportunity to network with like-minded or diverse professionals are drawing many takers. On the residential front, co-living helps save big on money wherein two or more persons share amenities like kitchen, internet and blend community living with private living. Of late, IoT compliant smart homes which feature several conveniences like power windows, sensors, solar power, high end security, smart appliances are also drawing urban dwellers.
Here are more reasons why co-living and co-working spaces are gaining ground:
• Flexibility and freedom: Freelancers and part time workers are looking for spaces that adhere to their changing schedules. And, co-working spaces offer that space which provides a sense of isolation and a professional setting, simultaneously.
• Convenience and affordability: If anyone were to reside in a posh area or the heart of a city, investing into or buying a residence itself would be very costly affair. Additional costs like maintenance and memberships for availing certain facilities would also add to the financial burden. These worries are done away with, in co-living spaces as they offer a hassle-free living experience with all amenities within easy access.
• Physical and mental well-being: As opposed to travelling long distances or braving traffic snarls to reach a workplace, mall or any other area, co-living spaces have great connectivity and save on time. It also saves individuals from anxiety, stress & physical discomfort. This extra time can be used to zone out from a busy work day and focus on hobbies and recreational options.
• Upgrading or reducing the frills: Co-working spaces are a win-win situation for developers as well as they have the option of upgrading certain facilities and downgrading others depending on dynamic and changing circumstances in this space and accordingly, provide topline experience to their customers.
• Community living: The basic concept of co-living spaces is to offer social interaction and a sense of community living while sharing numerous facilities. It’s a great opportunity for professional networking as well.
• Financial flexibility: Co-working spaces are a great option for start-ups who are looking to create an impact in the market. Instead of paying high rentals, water & electricity bills, they can use the money saved to enhance their offerings and other business aspects.
The future is bright for co-living and co-working spaces as they offer a combination of community and individual living, hybrid, office and remote workspaces. Most importantly, as organizations and cities continue to develop and expand, these spaces will also flourish with the rising and changing real estate dynamics making them a lucrative investment for both developers and end-users.