Growth of a Coworking Space in Indore
Coworking spaces are the most popular shared office space concept. Innovations in the form of such workspaces have made a significant difference in the entire work environment of a workspace. Coworking space owners have always made sure that people aren’t just working alone while sharing a building; instead, they have encouraged the practice of keeping relationships with coworkers. Coworking is possibly still in the early phases of development in India’s tier 2 cities as an essential category of office space rental. The coworking concept has grown dramatically in recent years, and it is primarily the private sector’s reaction to today’s activity-based work requirements.
Today, freelancers, small enterprises, and startups are particularly fond of the idea of rental office spaces since they provide flexibility without requiring them to sign long-term leases.
When compared to renting a traditional office space, coworking spaces are estimated to result in savings of between 20-25% in India’s main cities of Bangalore, Pune, Indore, and Delhi NCR. In India, infrastructure, networking possibilities, and pricing are the main factors influencing the growth of coworking spaces. In India, small and medium-sized businesses, freelancers, and startups are mostly concerned with infrastructure and pricing.
The startup ecosystem has been encouraged by an increase in the number of managed office spaces in tier 2 cities such as Indore, Ahmedabad, Rajkot, Udaipur, Kota, Surat, Pune, and others. Communities can be built within coworking spaces by startups looking for an ecosystem. Considering more people now aspire to create their businesses, coworking spaces have grown in demand in tier 2 cities. Rental office spaces are reportedly available in more than 40 Indian cities, including small towns, comprising 2,197 coworking spaces in India, according to the research.
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We expect a similar demand across Indore for these given factors:
New business owners in Indore
The population of the city is well-versed in technology and skilled at establishing and carrying out their businesses. These talented individuals may need to wait a long time to lease a dependable office with adequate infrastructure, but shared office spaces will make the process simpler, reduce the waiting period, and let these professionals proceed to work right away.
Congested Cities around
The workplace needs to be conveniently located for employees and potential customers. Parking issues, related expenses, and saturation are just a few of the issues Tier 1 cities deal with. Shared office spaces would give a higher quality of life and cheaper property taxes and rates if they were to spread to tier 2 like Indore, which have more affordable spaces to offer. Cities in tiers 2 are therefore better candidates for expansion like Coworking spaces in Indore.
Good working environments
Rental Office spaces provide high-quality workplaces that are accessible 24/7 at an affordable cost. Shared office space facilities are thought to be more cost-effective than traditional self-managed offices by up to 30%.
Government promotions
To handle the problems existing in urban areas, the Smart City Mission was launched in 2015. This has presented a chance to expand the cities’ potential for growth, including the emergence of new coworking spaces. The government’s “Make in India” initiative is encouraging tier 2 and tier 3 cities to develop, and this will also inspire individuals to move to tier 2 cities like Indore, which would increase the demand for managed office spaces in Indore.
Short-term projects
In order to grow their businesses in tier 2 and tier 3 cities, both domestic and foreign corporations may require temporary workplaces. This would boost the need for coworking spaces in such places. Due to the lower operational costs, flexible work environments, and affordable access to excellent land, all of these businesses would prefer coworking spaces.
Modern-day workforce requirements
India, where the average age of the workforce is 30, will have the youngest workforce in 2023. The economy, however, is unable to provide enough jobs to employ the pool of potential workers. As a result, the number of freelancers is rising. Indore being a growing city of India sees a surge in startups and large company branch opening, thus increasing the demand of coworking spaces in Indore. In addition to high pay, these assets are looking for other benefits like flexible work schedules, cozy work environments, and access to top-notch utility services like the Internet, among others. These shared office spaces are a winning combination of these different requirements, making them a well-liked choice among businesses and professionals around Indore. Every organization, from established companies to bootstrapped startups, seems to be adopting coworking to assess the potential of Indore locations.
The following are the primary reasons why Indore selects coworking spaces:
- A lack of funding for early-stage business expansion
- Identifying technology partners
- Collaborating with highly motivated individuals who share your views
- Creating a Network
The growing number of home-grown businesses and entrepreneurs in Indore has been one of the most fundamental reasons for the rise of coworking spaces in Indore. Talented people had initially gone to Tier 1 cities because only these cities were able to offer them opportunities to develop. But thanks to technological advancements, everything can now be done online. There are more than 50 coworking spaces in Indore alone. Such a choice would have involved the input of many sharp, young brains in these fields.
Facts regarding India's coworking spaces:
- Large companies with more than 150 employees make 69.1% of the reservations for rental office spaces.
- Shared office space reservations will increase by 300% in 2023.
- 27% of the 8.2 million square feet of net absorption across the top seven cities
India's potential market
The coworking sector is expanding quickly across the nation, with new companies entering every day. According to the Economic Survey Report 2022-2023, Indian startups have risen from 452 in 2016 to 84,012 in 2022; the country is second in the world in the most number of startups (by rankingroyals), with a total employee base of a million. In the following years, the figures are expected to soar. India is developing rather quickly because of its large (second-largest in the world) freelancing workforce. Together, these two elements suggest a demand for more than 4–5 million seats.
Accordingly, the number of employment possibilities created in Tier 2 cities like Indore in India will determine how the concept of temporary office spaces in those cities will develop in the future. In the upcoming years, maintaining the motivation of the younger generation in the workplace might prove important. To accommodate the flexibility of location and provide a creative environment for their employees, many large organizations that either own office spaces or are still functioning through traditional leased-out buildings are also approaching coworking space providers.
Why are coworking spaces gaining popularity among businesses?
The main factors that draw businesses to coworking spaces are listed below.
Affordable Office Space
Expansion of innovation
Enhanced productivity
Access to a vast range of innovative talents
Different kinds of coworking spaces
Here are the types of coworking spaces
- Informal coworking settings
- Bartering coworking spaces
- Business coworking spaces
- Specialised coworking spaces
- Regular coworking spaces
- A luxurious coworking space
- Public coworking areas
- Coworking facilities for incubators
Why do people prefer coworking spaces?
Size
Coworking spaces are ideal for businesses of any size.
Affordable
The reason why many enterprises, freelancers, and small businesses choose rental office spaces to hire larger corporations is that it is cost-effective.
Location benefits
Employees have more freedom to work from wherever they feel most at ease in the coworking space.
Collaboration
New businesses meet experts in related fields in coworking spaces.
Conclusion
To establish and expand their businesses, freelancers, startups, and entrepreneurs in Indore need the appropriate infrastructure and support. The majority of startups are choosing to shift away from traditional and established privately held office spaces and towards rental office spaces since they have access to a variety of resources and services that can help enhance business growth. Everyday conveniences and a friendly environment can motivate small businesses to grow wiser and more versatile while creating a surplus of fresh opportunities to seize while working at a coworking office. Several coworking facilities can help startups increase their productivity and revenue.
