Insights from Manas Mehrotra, Founder of 315Work Avenue
In recent years, the way we view workspaces has transformed significantly. Commercial Real Estate (CRE) is undergoing a remarkable change, largely influenced by the soaring popularity of coworking spaces. These spaces are becoming the top choice for businesses of varying sizes, reshaping the workspace landscape.
Tech companies are playing a pivotal role in shaping India’s office space leasing trends. Notably, there’s a surge in demand not only from tech giants but also from domestic players, particularly in engineering and manufacturing sectors, indicating a rising interest in office leasing.
Manas Mehrotra, the Founder of 315Work Avenue, highlighted how coworking spaces, by adopting the hub and spoke model along with decentralization strategies, are making workplaces easily accessible, thus boosting productivity. Mehrotra emphasized the benefits witnessed by numerous companies from this model, especially in seat capacities ranging between 100 to 500, and in some cases exceeding 1000 seats. Bengaluru stands out as a preferred destination for flexible workspace expansion.
Flexible workspaces had a strong performance in 2023, and their share within overall leasing is expected to increase further. Mehrotra stressed the importance of coworking spaces offering value-added services, predicting India’s rapid growth in the flex office market by 2030, capturing a significant share.
Looking ahead, Mehrotra foresees a substantial rise of around 15-20% in coworking space demand over the next few years, possibly higher with stable macro fundamentals. This shift from traditional setups to coworking spaces is not only benefiting commercial real estate operators but also aligning with evolving economic needs.
In essence, these flexible workspaces are becoming the new norm, filling a unique void by catering to changing office requirements in today’s dynamic economy.
Also read: Real Estate Wishlist for India’s 2024 Union Budget