Size of co-working office market likely to explode to this much in 2021
New Delhi: The market penetration of flexible offices or shared spaces in overall office space currently stands at 3 percent. Driven by higher demand from big companies, JLL expects the size of co-working office space market to touch 39 million square feet in 2021.
In the ongoing calendar year, the country is likely to see deeper penetration of co-working spaces as many big corporate occupiers continue to move away from long term and capital intensive office set up.
The co-working space solutions will be leveraged even more in 2021 to meet temporary space needs and also get into new geographies, according to a report by JLL.
REITs market in the country has been one of the biggest catalysts to let investment keep happening. Even foreign investors, whether FIIs or FPIs, have been able to invest in the evolving REIT scenario in India and take advantage of good sponsor quality and proven track record.
Now the listing of new REITs in India is likely to give opportunities to institutional investors to construct good asset portfolios or co-invest with some existing platforms before hitting the IPO.
“India’s emerging REITs market is likely to see global investment and improve transparency. This loop of increasing maturity and capital flows will lead to investments scaling new peaks. Office market is on its road to recovery as it is likely to witness an increased number of new completions of close to 38 mn sq. ft, while net absorption is likely to hover around 30 mn sq. ft,” said Samantak Das, Chief Economist and Head of Research, JLL India.