- The coworking industry in Mumbai has witnessed a drastic change in the outlook of many stakeholders, especially landlords and occupiers. Coworking is now widely accepted as an integral workplace strategy by businesses across Mumbai to the extent that Mumbai now ranks among the top 3 Indian CRE markets where the demand for flex workspaces is thriving. This is because the benefits flexibility offers have been realized by the corporate world and are at the core of workplace strategies.
- Early occupier trends in Mumbai’s CRE market suggest that flex workspaces were demanded primarily for short-termed workplace strategies. However, the pandemic led evolution in occupier sentiments have made flex workspaces an integral part of long-term workplace strategies. Flex workspaces constitute 60% of total workspace demand while managed offices have a 40% share in Mumbai’s CRE market. BFSI sector is the top occupier of flex workspaces and enterprise solutions are also witnessing a rising demand.
- Not only has the of demand for flex workspaces grown, but the city is also observing a higher absorption rate. 90% of the coworking centres in the city are occupied which indicates how coworking players need to catch up to the speed of demand to meet this growing need efficiently.
- As companies shift their emphasis on achieving their ESG goals, coworking players of Mumbai are now focusing on providing workspace solutions that comply with ESG guidelines. As a result, experimentation and innovation to build sustainable workspaces are likely to increase in the coming years. Another important focus point will be technology. An organized system that syncs technology and HR initiative can lead to flexible management of seat requirements when working in a hybrid/ flexible work model.
- Though majority of the Indian workforce has migrated to tier-2 and tier-3 cities and companies are providing the flexibility to work from home, the problem of a suitable infrastructure to work seamlessly still persists. To overcome these challenges without hindering flexibility, companies are increasingly adopting flex workspace solutions. Additionally, this solution helps in welcoming a geographically diverse talent pool, eliminating the stress of rental commitments and managing flex workspace availability as and when needed.