Joint Co-working spaces have transformed the commercial real estate market in India and remain a preferred option for companies in the near future.
Commercial real estate in India has experienced tremendous growth in the last decade, from business parks and expanding office spaces to mega malls with more than one hundred brands. The sector continues to attract Indian and global investors alike. From office space to shopping centers and warehouses, the commercial real estate sector registered a 40% jump in 2019, compared to 2018, according to JLL Pulse - Monthly Real Estate Monitor. Backed by optimistic economic fundamentals, healthy demand and good supply in all sectors, India's real estate sector is also prepared for strong growth in the coming years.
The last few years have seen an increase in the demand for joint workspaces. There has been a major change, from traditional office environments to the greater inclination of plug-n-play office space. These spaces are a solution to the needs of SMEs, startups, and multinationals that are constantly evolving. About 12 million square feet of first-class office space have been completed and 11 million square feet have been absorbed over the past three months. According to the third quarter real estate update at JLL. This is expected to grow three times, in the next three to five years, which will generate huge opportunities for this business in India. Joint work has become an important sector, playing a key role in the growth of commercial real estate rental activity.
Shared workspaces slowly replace traditional office space, as multinational companies and companies choose traditional office space and modern space with class A amenities at reasonable prices. As companies continue to rate flexible space groups in India, players working in this sector continue to expand their presence throughout the country. Today, India has one of the largest markets for flexible spaces in the Asia Pacific region and will continue to make progress. Since its creation, joint workspaces have come a long way. Previously, real estate agents distrusted operators to rent spaces. Due to the lack of knowledge related to the joint business model and the unwillingness to make changes in the rental space.
The future of joint workspaces in India
With the trend of continuous joint work, more and more real estate investors choose to include joint workspaces in their investment portfolios. With regard to community members, it is safe to say that joint workspaces function as an ideal workplace, by closing the gap between the needs and interests of community members, by providing the optimal infrastructure that It improves the balance between work and life at reasonable prices.
According to the JLL report on "Emerging Trends in the office sector in India," the total area of space occupied by providers of shared space for work, in the seven major cities, tripled from 1.1 million square feet to 3.4 million square feet, over a period of one year. In addition, the number will only increase in the coming years. From rental models to world-class technology, cooperation is the fastest-growing segment and will definitely prove to be a change for real estate business games in India.
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