Leasing by co-working operators to rise by 42% in 2021: Report
NEW DELHI: Co-working space leasing is expected to increase by 42% in 2021 at 4.9 million sq ft over 2020. According to a recent report by Savills India, shared offices are more likely to gain higher attention in the post-Covid world.
Co-working operators are expected to lease approximately about 3.4 million sq ft accounting 11% share of the total office leasing market in 2020. The overall leasing activity is expected to face a bump in 2020 as compared to 2019. Besides that, in the next two years, it is expected to witness a steady hike. The share of co-working space take-up in overall office leasing activity is poised to rebound to a 15% share in 2021. It is similar to the level of 2019.
According to the report, more than 3,000 co-working centers across the country are likely to provide around one million desks by 2022. In addition that leasing of the co-working segment is expected to increase by 29% during 2015-2022.
Co-working leasing in India has increased from a 5% share in 2016-17 to about 15% in 2019. Besides that covid-19 pandemic uncertainty in the commercial office market has affected the growth trajectory in 2020. According to Savills India, it is still expected to contribute around 10% of the overall leasing activity in 2021 and 2022,
In 2020, as of Q3, Bengaluru and Hyderabad takeover a combined share of around 66% of the total leasing activity in the co-working segment.
