Coworking has managed to become an established part of the commercial real estate industry in 2019 and is expected to continue growing in the new year.
Millennials, SMEs, startups and corporates will continue to drive demand for coworking spaces. In 2020, even more large enterprises will embrace coworking spaces for short-term expansion plans.
Additionally, many of India’s coworking operators are expected to double or even triple their footprint in the next two years. The country’s most prominent operators include CoWrks, WeWork India, Awfis, Regus, Smartworks, 91springboard and hospitality firm OYO’s Workspaces.
Despite its massive growth, experts also believe that there will be a wave of consolidation to hit the sector. Coworking spaces that are not profitable will likely be left to either merge or seek acquisition from larger, more sustainable companies. For example, Oyo acquired coworking company Innov8 in 2019.
Overall, it is clear that coworking offers a one-of-a-kind, stimulating environment, but some business models can create concerns, such as cybersecurity risks.
In order to thrive in the long run, operators must adapt to the needs of their occupants by offering a wide variety of workspaces and providing privacy.