Co-working space demand increasing rapidly: Knight Frank report

Co-working space may be a very new term in Mumbai, but a recent report by real estate firm Knight Frank admits that co-working demand had a huge role to play in the jump in transaction in office space market in the second half of 2017.

According to the report, office space saw a marginal rise in the vacancy level. The report states, new office space supply hit double digits for the first time since 2012, 76 per cent higher than previous year. Vacancy levels saw a marginal rise to 20.2 per cent in 2017. Co-working demand had a big role in the jump in transactions in the second half of 2017. This segment has been emerging as a new occupier category similar to the e-commerce wave of 2014–15 in Bengaluru.

A report by PwC, released last year, had also attributed co-working spaces as the next big thing in the commercial real estate sector. "Few trends within the commercial real estate world have taken off as quickly as co-working. Only 24 months ago, most people in the industry had never heard of it. Today, it is taking the office sector by storm, with co-working operators emerging as the biggest source of demand for new office space in many major cities both in Asia and throughout the world," said the report

Dr Samantak Das, Chief Economist & National Director – Research, Knight Frank said,"The office market has witnessed new found buoyancy with new completions recording double digit growth for the first time since 2012. While peripheral markets continued to attract occupiers, new-age businesses such as co-working space providers have fortified their presence."