The evolving work patterns and lifestyles are changing the outlook of companies towards office spaces. Amid Covid restrictions, the companies relied on remote working models to sustain business operations. And with Covid fear withering away, the companies are pondering on sustainable models to bring their workforce back to physical spaces. Stressing on flexibility, companies especially in IT, BFSI sectors, startups, and boutique firms are preferring flexible or hybrid office spaces to match modern-day needs while keeping cost benefits and employee welfare in mind to yield promising outcomes.
The trend is widely reflected in industry reports and as per JLL, the current market share of flexible workspaces in total office space stands at 3 percent and this is expected to go up to 4.2 percent by 2023. The report also stresses that the flexible space segment is set to grow at an average of 15-20 percent year on year. The inclination is widely due to the benefits these spaces entail like shorter tenures, low capital investment, facility management, security, and low maintenance.
Amidst rising prices, the companies are now changing their approach and focusing more on cost-optimization to avoid pandemic-related, and similar risks in the near future. Additionally, a flexible or hybrid work model also benefits the organizations that are planning to set up bases across various locations in the country for various reasons.
Today, there is a strong entrepreneurship wave in the country, and infrastructure upgrades, wider internet cover, technology advancements, and ease of doing business have positioned India as a global startup leader. This growth has led to a domino effect and the demand for flexible or co-working spaces is on a monumental rise. The young founders or entrepreneurs are attracted to these offices as they are affordable, trendy, and well-managed, carrying all amenities to match a perfect work life.
Moreover, the pandemic has added new dimensions to the work culture. A majority of the workforce is operating from tier 2, 3 cities or their hometowns and they desire to stay close to their families. Mulling over giving the maximum benefit to employees for their well-being, the companies are preferring flexible or hybrid workplaces as these spaces are the best option for them to support their workforces working remotely. Additionally, these spaces benefit the companies in curbing the density, decentralizing, and reducing long-term lease commitments. Also, they find such spaces better in their plans of setting up satellite and regional offices in various parts of the country, mainly in tier 2 cities or non-central locations.
Going forward, flexibility will influence the decision-makers in the future and they will continue to prefer it for long-term benefits such as affordability, networking, lower commute time, and employee welfare. Also, co-working, hybrid spaces will enable the companies to create vibrant ecosystems and different work environments to offer a healthy work-life balance to their employees in the coming future. A majority of the working population will get inclined toward hybrid work models and demand will increase. Flexibility will be the future of workspaces and companies will be largely adapting to this change for positive outcomes and better results.
(By Ravi Singh, Head Communication, Viridian Group)
