By Manas Mehrotra, Founder, 315Work Avenue
The employment scenario in India is undergoing a significant shift towards flexible and hybrid workspace eco-systems driven by economic policies that are encouraging companies to decentralize operations in response to workforce preferences and the emergence of well-being as a central value. The popularity of flexible workspaces, such as managed and coworking spaces, is increasing as businesses recognize benefits such as agility, diverse experiences for employees, and modern amenities that create exceptional work environments. With businesses exhibiting dynamism in recent times, especially in the metros, there is high demand for coworking spaces to cut capital expenditure and rationalize operations.
Rapid expansion of coworking sector
Recent reports show an increasing inclination of medium-to-large-sized businesses to increase the proportion of flexible spaces in their overall office plans over the next two years. Additionally, there is a projected 25 per cent increase in small businesses planning to incorporate flexible spaces into their office portfolio. Flexible workplaces are being driven by the technology sector and startups as well as large enterprises which are demonstrating high adoption rates. Interestingly, MSMEs from non-tech industries too are evincing interest in flexible spaces across metros as well as Tier 1 and Tier 2 cities. The market for flexible workspaces is growing due to factors such as adaptable office spaces, portfolio optimization, hub-and-spoke location strategies, financial advantages, strategic partnerships and new business models. This projected massive shift towards flexible office models is exhibiting a new era of employment in India and as demand for coworking and flexible offices grow along with expanding commercial real estate, prospects for both the white and blue-collar opportunities are growing rapidly.
A boost to local economies
Given the expansion and profitability of the enterprises, coworking spaces are having a significant impact on local economies and communities. The expansion is ushering in a steady stream of professionals and entrepreneurs resulting in positive spinoffs for the neighborhood. As coworking spaces provide an affordable and flexible workspace option, it lowers the entry barrier for entrepreneurs, encouraging more people to launch their own businesses. Seeing a thriving coworking space can signal that a neighborhood is vibrant and has potential, encouraging economic investment and development.
Coworking spaces create direct jobs, including roles in management, customer service, and facilities maintenance. They also indirectly support jobs by attracting businesses that need local services, such as IT support and other infrastructure support. Coworking spaces also offer networking opportunities that can lead to collaboration and partnership opportunities. This can enhance the local business ecosystem and encourage innovation. The success of coworking spaces can also lead to increased interest in real estate and overall development in the surrounding area, potentially revitalizing underdeveloped or neglected neighborhoods.
In conclusion, it can be said that coworking spaces often attract a diverse range of businesses that help stabilize the local economy by reducing reliance on any single sector. In the overall scheme of things, coworking companies can act as economic catalysts, enhancing the vitality and resilience of local economies through their multifaceted impact. In the long run, the development of any metro would be heterogenous in nature as the city centre and peripheries would complement each other. With office spaces getting distributed across different regions of a metro, concentration and resultant congestion would scale down. This would ensure the healthy growth of urban centres that would ultimately enhance the quality of life of not only the general population but of the working professionals too. This has a direct bearing on the health of the economy that would demonstrate a vibrancy benefiting society as a whole.
