Co-working Space Supply Jumps 70% In 2019 Over 2018
New Delhi: Co-working space supply in the country jumped about 70 percent by the end of 2019 as compared to end of 2018. The total supply went past 12 million sq ft mark at the end of 2019 as against 7 - 7.5 million sq ft at the end of 2018, according to ANAROCK property consultants.
In terms of number of centers, co-working office provider Regus emerged as the top player in the country with 160 centers. Awfis and WeWork took the second and the third position with 63 and 37 centers respectively.
The number of co-working centers is expects to double in the next couple of years. The top seven players have around 350 centers in the country currently.
“PE funds and institutional investors will continue to back bigger players in 2020. Survival is a challenge for smaller flexible office players and hence there will be more mergers and acquisitions in 2020. Current lease-based structure is not flexible and cost efficient. 2020 is likely to see the rise of ownership model,” said Anuj Puri, Chairman, ANAROCK Property Consultants.
Even with the failure of WeWork IPO in the USA, co-working office spaces have become promising assets class for landlords and will continue to hold value for them and even gain in prominence in the next few years.