Coworking space: Real estate business thrives on rising foreign MNCs' demand

Co-working space is gaining traction in India these days as the overseas multi national companies (MNCs) are looking forward to India as a market with great potential, especially after the ambitious Startup India scheme boosted entrepreneurship. A completely furnished office space with optimum infrastructure, which the co-working spaces offer here is helping these MNCs to a great extent to pilot their services in India.

On how foreign companies are pushing the co-working space business in India Gautam Duggal, Co-founder & CEO at Eccosphere told Zee Business online, "Due to globalization, a lot of MNCs are looking forward to India as a market with great potential. The major issue faced by these companies is establishing a functional workplace in their initial phases or trial phases, and the best solution is – Co-Working Spaces. A completely furnished office space with optimum infrastructure, which these co-working spaces offer is helping these MNCs to a great extent to pilot their services in India."

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As per the real estate services firm CBRE, "The global average utilisation of assigned seats is 60 per cent, excluding vacant seats, while the global average meeting room utilisation is just 30 per cent." The CBRE further adds that the next few years, with office rents continuing to move up across India, the total space leased by co-working operators in tier-1 and tier-2 cities could touch 6-10 m sq. ft. by 2020.

Manas Mehrotra, Chairman, 315 Work Avenue said, "We believe there is a massive market opportunity as co-working spaces are experiencing a high growth trajectory in India. Co-working space providers' priority now is to deepen the penetration in existing markets and enter newer cities. They also plan to expand to tier-II cities in the near future and emerge as a key player in the Indian shared workspace market.”