How Much Savings Can Be Achieved from Co-Working Offices?
India’s metros are home to thousands of startups, small businesses, and millennials who are seeking new work environments. In this scenario, co-working has come up as a popular business model that is redefining office spaces in the city. Co-working spaces are in great demand in cities like Bengaluru, Mumbai, and Hyderabad as they provide the necessary support, infrastructure, networking opportunities and office facilities to entrepreneurs who are just starting out.
SMEs and startups stand to save 15-20 percent costs by operating out of a co-working space, while also enjoying the benefits of a plug-and-play, fully functional workplace. Co-working spaces are increasingly catching the fancy of startups and even large companies as they recognize their cost benefits. Costs can be divided into two categories- Initial fixed expenses and monthly expenses. While fixed expenses include refundable deposit, furniture, installation of electrical fittings, monthly expenses include rent, salaries, electricity, and internet charges.
Here are the findings of a research conducted by ET Wealth across major Indian cities and their leading micro markets to calculate how much savings can be achieved from co-working spaces:
Bengaluru
The country’s leading IT hub accounts for a majority of startups and more than a quarter of upcoming co-working spaces including major international names.
Whitefield
| Rented Office | Co-sharing space | Estimated savings | |
|---|---|---|---|
| Fixed expenses | 2,60,000 | 1,08,000 | 1,52,000 |
| Monthly expenses | 47,000 | 45,000 | 2,000 |
Ashok Nagar
| Rented Office | Co-sharing space | Estimated savings | |
|---|---|---|---|
| Fixed expenses | 2,60,000 | 1,08,000 | 1,52,000 |
| Monthly expenses | 47,000 | 45,000 | 2,000 |
Mumbai
The nation’s financial capital is also amongst the most expensive to rent a commercial space. The deposit for office space in Mumbai is much higher compared to other cities. With their cost benefits, co-working spaces are gaining popularity in all major micro markets.
Lower Parel
| Rented Office | Co-sharing space | Estimated savings | |
|---|---|---|---|
| Fixed expenses | 3,41,000 | 90,000 | 2,51,000 |
| Monthly expenses | 44,000 | 39,000 | 5,000 |
Vashi
| Rented Office | Co-sharing space | Estimated savings | |
|---|---|---|---|
| Fixed expenses | 2,59,000 | 58,500 | 2,00,500 |
| Monthly expenses | 34,000 | 28,500 | 5,500 |
Pune
The fast-emerging IT hub has witnessed sharp commercial growth in the last few years. Steady demand and sluggish supply has resulted in a sharp increase in office rentals. Companies and individuals are increasingly looking for economical options in the form of co-working spaces.
BMCC Road
| Rented Office | Co-sharing space | Estimated savings | |
|---|---|---|---|
| Fixed expenses | 2,10,000 | 45,000 | 1,65,000 |
| Monthly expenses | 35,000 | 24,000 | 11,000 |
Hinjewadi
| Rented Office | Co-sharing space | Estimated savings | |
|---|---|---|---|
| Fixed expenses | 2,40,000 | 63,000 | 1,77,000 |
| Monthly expenses | 40,000 | 30,000 | 10,000 |
Co-working activity by space operators has grown by leaps and bounds over the last two years with this year alone expected to witness leasing of more than 1.5 million sq. ft. As global co-working leaders foray into India, the space is likely to get more competitive and offer better value for money to occupiers.
Source
- https://economictimes.indiatimes.com/wealth/save/how-much-you-save-by-co-sharing-offices/articleshow/61699126.cms
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