Coworking Market Size to Double Over Next 5 Years: CII-ANAROCK

New Delhi, Dec. 3: While hybrid work environment is here to stay, keeping a balance of Work From Home and Work From Office, realty experts predict that coworking market size to double over next 5 years at 15 percent Compound Annual Growth Rate (CAGR). More companies are likely to choose flexible workspaces to maintain a hybrid work model in a post-pandemic world.

According to a latest report presented by Confederation of Indian Industry (CII) and Anarock, realty consultancy firm, approximately 35 Mn sq. ft. flexible office stock is available across India of which approximately 71 percent of it (25 Mn sq. ft.) is by large operators. In the survey report, namely Workplaces of the Future, also mentions that approximately 3.7 lakh flexi seats are currently spread across the major Tier 1 and Tier 2 cities of India.

Mr. Anuj Puri, Chairman, Anarock Group and Chairman-CII Roundtable on Future Workplaces, said, "A work-from-anywhere future requires significant preparations and technological support. On the other hand, the hybrid work model benefits both employers and employees - including via cost savings which by themselves justify taking the hybrid model very seriously."

The survey, which was conducted via social media platform LinkedIn, also states that 65 percent of respondents were convinced of the high potential of hybrid or remote working in India, while just 35 percent did not favour these models. It also mentions that at least 54 percent of respondents favour a hybrid model wherein they work from the office for a few days and the remaining from home whereas 33 percent prefer working entirely from the office. Only 13 of the survey participants consider working from home suitable, owing to smaller apartment sizes and larger families.

"India is at the cusp of a coworking revolution with several large players operating across the country. Not just existing coworking players but also new operators have major future expansion plans. For instance, coworking player Smartworks plans approx. 20 Mn sq. ft. of coworking space comprising approx. 2.5 lakh seats over the next 3-4 years." Mr. Puri further said.

Working From Home continues to hold challenges for the workforce as 50 percent of respondents see maintaining a work-life balance as the chief hurdle. While 23 percent of respondents find it challenging to collaborate while at home, 16 percent complain about low productivity, and 11 percent face issue with internet drop-offs. An overwhelming percent of employed workforce, upto 90 percent of respondents, think that organizations are hesitant to adopt remote working due to trust issues among employers.