Although still in its nascent stage, the concept of co-working spaces where individuals or startups share a common workplace environment, is fast catching on in India, with 0.73 million square feet of co-working space being absorbed in 2016. In Hyderabad, where presently there is very limited supply of coworking spaces, the situation is set to improve soon along with a hike in demand, according to a report.
“One key advantage of setting up a co-working space in Hyderabad is that infrastructure and real estate come cheap, here. However, when we opened our co-working space three years ago, not many people knew of the concept and were not ready to accept the membership model we worked on. Over the past one year, however, the transformation of Hyderabad into an emerging startup city has caused many to embrace the concept of co-working spaces,” said Vineel Pindi who manages the 50-seater Collab House coworking space at Jubilee Hills.
The report, produced by real estate consulting firm Jones Lang LaSalle (JLL), pointed out that companies can save as much as 15-20% by working in a co-working space, which provides facilities that are at par with grade-A offices.
“When compared to cities like Gurgaon and Mumbai, where the demand for and supply of co-working spaces is very high, the demand in Hyderabad can be termed promising. The two co-working spaces that we run in Hyderabad both have vacancy rates under 5 per cent. Many are seen now opting for these flexible working stations as they are more hassle-free, given the absence of longer leases and lock-in periods. Co-working spaces are hence more cost-effective,” explained Monika Misra, founder and General Manager of iKeva, which has set up co-working spaces in Chennai, Bengaluru, Mumbai and Gurgaon as well.
Given the inherent risks in running a co-working space, certain operators are looking at ways to mitigate the risk by leasing out a big chunk of their space to companies or corporates, according to real estate consultants. This is perhaps why , along with small and medium businesses, start-up ventures and freelance professionals, even corporates are seen vying for space at co-working stations across the country .
When contacted, T-Hub officials confirmed that while the catalyst building at Gachibowli, spread over an area of 70,000 sq ft is housing around 200 startups, phase two of the facility, currently under construction, will be spread over an area of 3,50,000 sq ft and will have the capacity to house 200 more startups.