Office space demand fuels co-working segment in Delhi-NCR

With rising demand for office spaces in Delhi, co-working spaces have gained popularity. The trend started last year, with providers of such spaces enticing start-ups and self-employed people to lease such properties. Now, these companies are offering innovative price points, lesser legal documentation and more amenities, to woo more customers. Recently, InstaOffice and TheOfficePass opened their co-working spaces in Gurugram, joining a list of over 20 such office space providers in the National Capital Region.

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Co-working spaces: Current trends in the NCR

The year 2016 witnessed a rush from companies, to establish and enter the market. During the latter part of the year and now in 2017, companies are focusing on expansion and growth. Delhi-NCR, with its sub-cities of Gurugram, Noida, Ghaziabad, Faridabad and others, is the fastest growing co-working market in India, essentially on account of its large population of freelancers and MSMEs that are located in the region, explains Aditya Verma, co-founder of TheOfficePass. To tap this demand, InstaOffice is planning more offices in Gurugram and Bengaluru. “We plan to have our InstaOffice at every 20 kilometre distance, so that people have enough options to work. Our first 100-plus seating centre in Delhi, would be opening shortly, with another one of the same capacity coming up over the next 3 months,” says Vikas Lakhani, co-founder of InstaOffice.

What do co-working spaces offer?

Most co-working spaces in Delhi-NCR, offer spaces on a need basis. On offer are private desks, open desks, cubicles and meeting and conference rooms, along with basic office amenities such as Wi-Fi, printers and office services such as coffee, tea, etc. Firms, so far, have been flexible with their rates. While the lowest rate available, is on an hourly basis, monthly packages are also offered.

The lowest range starts from Rs 300-400 for an hour and depending on the location, monthly packages start from Rs 3,500 and goes as high as Rs 12,000.

Those offering higher rates, are generally located in Grade A office buildings or in the central areas, while those with lower rates, are closer to the peripheral regions. Prices in the same company may vary, depending upon the location you select. Some companies also offer subscriptions that are valid for other offices in other locations, provided there is a vacancy. This arrangement can be helpful, for those who have a travelling job.

Some have even started targeting corporate offices in far suburbs. “Many corporates, often look for affordable lease rates in central locations, for their employees who are always on the field,” says Lalit Singh, the co-owner of one such co-working space operating in Janakpuri and Dwarka, adding that co-working spaces are ideal for these clients.

To lure tenants, several providers have also started offering legal, accounting and digital marketing services within the packages, as well as organising office events and outdoor activities. These offices work six days a week, with Sunday being the weekly off.

Co-working rental rates and trends

City	Average cost per desk per month*	Hourly charge*	Demand mostly from
Noida	Rs 3,500-4,000	Rs 300-400	Corporates, start-ups, freelancers and self-employed
Delhi	Rs 4,000-10,000	Rs 300-400	Self-employed and freelancers
Gurugram	Rs 4,500-12,000	Rs 300-400	Corporates, start-ups, freelancers and self-employed

*The cost does not include service tax or other applicable taxes.

The rentals are derived on the basis of interactions and surveys with players in the region.

The market for co-working spaces

As the demand for co-working spaces is expected to remain robust, even development firms are now looking to enter the market in a big way. A recent report, ‘Co-working space: The New Kid on the Block’, by research firm Colliers International, identified some key factors that will drive this growth. According to the report, an increasing number of international players are likely to enter this segment, in coming years. Moreover, the working patterns of the Indian population, will fuel the demand for more independent working spaces.

The report adds that within the NCR, Gurugram will see a lot of activity in this space, owing to the availability of infrastructure. “The market for co-working spaces in Delhi-NCR, could grow in triple digits over the next few years. This trend will be driven by places like Gurugram, south Delhi and Noida, which have a good mix of office and high-end residential establishments,” Verma predicts.

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