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Business News/ News / India/  Office real estate's coworking share rises to 20% in H1'22 from 6% in 2021: Report
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Office real estate's coworking share rises to 20% in H1'22 from 6% in 2021: Report

Bengaluru and Hyderabad remained on top in terms of net absorption across the top 7 cities in H1 2022, comprising 50% of total demand share, the data added.

File: With demand for such office spaces on the rise, premium real estate developers are building commercial properties with the option for smaller offices. Photo: iStock Premium
File: With demand for such office spaces on the rise, premium real estate developers are building commercial properties with the option for smaller offices. Photo: iStock 

With major companies and businesses including start-ups now opting for co-working, the the share of co-working spaces across the top 7 cities post COVID-19 stood at 20 per cent in H1 2022 in comparison to 6 percent in same period of 2021, shows data compiled by Anarock Group.

However, the the share of IT or ITeS sector declined from 49 per cent in H1 2021 to 36 per cent in H2 2022 due to many IT companies are now also preferring flexible spaces to regular office spaces.

Bengaluru and Hyderabad remained on top in terms of net absorption across the top 7 cities in H1 2022, comprising 50% of total demand share, the data added.

According to details, Bengaluru, Hyderabad and Chennai together witnessed net office absorption of approx. 12.2 million square feet, out of which 18% or approx. 2.23 million sq. ft. was by coworking players. While Mumbai Metropolitan Region (MMR) and Pune in western markets saw net absorption of nearly 5.45 million square ft. out of which 27% or approx. 1.5 million sq. ft. was by coworking players..

ALSO READ: Co-working player 'The Address' eyeing giant expansion in 2022

In National Capital Region (NCR), the net office absorption stood at approx. 2.75 million sq. ft. and out of which 0.41 million sq. ft. was by coworking players. In Kolkata, merely 0.4 Mn sq. ft. office space was absorbed and out of which 14 per cent or approx. 0.06 million sq. ft. was by coworking players.

"Coworking 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, including the housing-intense suburbs. Coworking spaces are now also operating out of malls and hotels across cities. Many large office parks are also housing coworking spaces. This helps companies to remain closer to their employees and offer them flexibility," Anarock Group chairman Anuj Puri.

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Saurav Mukherjee
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Published: 12 Sep 2022, 03:09 PM IST
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