Leasing by co-working operators to rise by 42% in 2021: Report

NEW DELHI: Leasing by co-working operators is expected to increase by 42% in 2021 at 4.9 million sq ft over 2020 with shared offices likely to gain greater significance in the post-Covid world, according to a recent report by Savills India.

In 2020, co-working players are expected to lease around 3.4 million sq ft accounting 11% share of the total office leasing market. Although the overall leasing activity is expected to reduce significantly in 2020 as compared to 2019, it is expected to increase steadily over the next two years. The share of co-working space take-up in overall office leasing activity is poised to rebound to a 15% share in 2021, similar to the 2019 level.

As per the report, over 3,000 co-working centers across the country are likely to offer approximately one million desks by 2022. Additionally, leasing activity by the co-working segment is expected to grow by 29% during 2015-2022.

Co-working in India has grown from having a 5% share in 2016-17 to about 15% in 2019. Although the pandemic related uncertainty in commercial office market has impacted the growth trajectory in 2020, it is still expected to contribute around 10% of the overall leasing activity in 2021 and 2022, according to Savills India.

In 2020, as of Q3, Bengaluru and Hyderabad had a combined share of approximately 66% of the total leasing activity in the co-working segment.