Home / Industry / Share of co-working spaces in office real estate rises to 20%

NEW DELHI: With major companies and other businesses opting for co-working, demand for flexible office spaces has hit a new high, as per latest data from ANAROCK Property Consultants.

Out of a net absorption of around 20.8 million square feet across the top seven cities in the first half (H1) of 2022, the share of co-working spaces stood at 20%. This was only 6% out of net office absorption of 9.33 million square feet in H1 of 2021.

Sector-wise, the share of IT and ITeS sector, the country’s leading office demand driver, declined from 49% in H1 2021 to 36% in H2 2022. This, according to ANAROCK Property Consultants was largely due to many IT companies preferring flexible spaces to regular office spaces. In terms of net absorption across the top 7 cities in H1 2022, Bengaluru and Hyderabad remained on top, comprising 50% of total demand share. Bengaluru, Hyderabad and Chennai, together witnessed net office absorption of around 12.2 million square feet. Of this, 18% or 2.23 million square feet was by co-working players.

Anuj Puri, Chairman ANAROCK Group, said, “Co-working has received a major boost after Covid-19 disrupted the previous status quo. A major factor driving demand is that these spaces are not concentrated in just the city centres or major employment hubs; they’re spread across different areas. Co-working spaces are now also operating out of malls and hotels across cities. Many large office parks are also housing co-working spaces."

Thanks to rising demand for office space, average monthly office rentals are also rising across the top cities. NCR and Hyderabad each saw a 5% rise in average monthly office rentals in H1 2022 compared to same period in 2021. Currently, the average rentals in NCR are at Rs. 80 per square feet and at Rs. 60 per square feet in Hyderabad. Bengaluru and Pune each saw a 4% yearly rise. The average monthly rentals in these cities were at Rs. 81 per square feet and Rs. 72 per square feet, respectively by the end of H1 2022.

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