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Around 20% space in co-working centres remain vacant: Report

New Delhi

24-December-2019

Although co-working spaces have made a significant mark in the tier-I and tier-II cities, a report by Flexispaces says that on an average around 20 per cent of the space or available seats in co-working centres remain vacant.

The report said that it is a major challenge for the segment which needs to be addressed and technology can play a role in it.

"On an average, 20 per cent of the overall occupancy usually goes vacant which is a huge challenge for the segment to overcome. Technology is the key to add fillip to every sector and co-working spaces are a part of the same. If adopted and applied judiciously, technology can help every large or small co-working space to achieve its 100 per cent occupancy target," said Co-working Trend Report for 2019 by Flexispaces.

Flexispaces is an aggregator for meeting rooms and shared office spaces.

The report further noted that a major trend observed is that corporate, enterprises and mid-size companies have started using co-working spaces to operate in remote locations where employee headcount is smaller.

"This saves them immense cost and yet helps them operate as a formal set-up, especially in tier-2 locations. As per the report, over 60 per cent of the enquiries end up booking one," it said.

As per the report, there more millennials other book the spaces in co-working centre in India compared to professionals.

There is a huge impetus on privacy as well, despite of sharing spaces in a co-working, it said.

"80 per cent of the customers opt for private cabins in co-working spaces and not open desks. Customers don't feel comfortable in working from open desks in co-working spaces. They prefer privacy over pricing," it said.

In terms of location, Bengaluru, Pune and Hyderabad top regarding the number of bookings and occupancy of the shared work spaces. Tier-II cities like Indore, Patna, Bhopal and Kochi have witnessed significant increase in the number of queries and bookings of meeting rooms and co-working desks, the report said.
IANS