Coworking market bounces back in H1 2022 as WFH takes a backseat

Buoyed on the renewed demand for flexible office spaces, the coworking space market has registered a comeback in the first half of 2022. As per data from Anarock Property Consultants, demand for coworking spaces jumped by a whopping 643 per cent in H1, 2022 over the same period last year.

As a result , the share of coworking spaces out of the total office absorption in the top seven markets in the country surged to 20 per cent from 6 per cent in H1, 2021. “Demand for flexible office spaces has hit new high notes post the pandemic, with major companies and businesses including start-ups now opting for coworking,” analysts at Anarock noted.

Out of a net absorption of approximately 20.8 million square-feet across the top 7 cities in H1 2022, the share of co-working spaces stood at 20 per cent. In H1 2021, its share was 6 per cent of net office absorption of approximately 9.33 million sq. ft.

In contrast, the share of IT/ITeS sector – India's leading office demand driver - declined from 49 per cent in H1 2021 to 36 per cent in H2 2022. However, this decline is primarily as result of many IT companies adopting flexible spaces to regular office spaces, they said.

According to Anuj Puri, Chairman Anarock Group, co-working has received a major boost after Covid-19 disrupted the previous status quo.

“A major factor driving demand is that these spaces are not concentrated in just the city centres or major employment hubs. Rather, they're spread across different areas, including the housing-intense suburbs. Coworking spaces are now also operating out of malls and hotels across cities. Many large office parks are also housing coworking spaces. This helps companies to remain closer to their employees and offer them flexibility,” he said.

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