In the past few years, the coworking segment witnessed a bull market across the globe, thanks to its business model that banks on providing accessible, flexible, and affordable workspace. Mumbai was definitely not behind the curve, as the latest coworking fad has already given the new wings to the city’s rising entrepreneurial spirit.
Here are the top five reasons why a co-working concept is flourishing not only in Mumbai but other global cities too :
Corporate ‘Bite’
Mumbai is also touted as the corporate capital of India, as this city of Dreams is home to Fortune 500 companies. According to the Insights group, a company that maintains the largest data focused on the coworking and flexible office market across the globe, Mumbai’s 35% of the corporates are already using this flexible real estate.
The Mumbai based global entities bank on some of the best coworking space in Mumbai, in a way to minimize cost and risk in an era that is marked by the shortened business cycle and to stay afloat in these troubled time.
Start-Up Ecosystem
According to Insight Group, India constitutes 5,200 startups and is the third-largest ecosystem after U.S.A and China. Tier-one cities like Mumbai and Bengaluru breeds almost 70% of what India holds. Starts up usually not prefer to go for a traditional office space owing to its higher rentals.
At present, over 6,600 coworking space in Mumbai is catering to Start-ups and small businesses, where renting a desk is much lower than renting an office space.
Mumbai’s buzzing Real-Estate market
Coworking space in Mumbai has developed from a minor trend to a mainstream fad, from the real-estate point of view. The city has an enormous supply of Grade A properties where higher rents are forcing the big companies to shift their bases to coworking spaces. It is the higher real estate costs plus the initial security deposits which sums up to be up to 10 months of the monthly rental, that makes coworking space in Mumbai a far more favorable option.
Odds favor Landlords and Real-Estate Developers
Prominent submarkets such as BKC have been transformed into the leading coworking space in Mumbai. Areas like these are becoming landlord favorable in the long term, thus carving out a potential real estate investment, and becoming a viable rental opportunity.
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