The Rise of Co-Working Spaces in Ahmedabad

Flexible Space Operators are driving office space absorption in Ahmedabad with a 20% share in leasing. – India Office Figures Q1 2022 Report

The pandemic has changed the definition of work-life for the whole world. What we used to see as cubicles, daily commute & rigid systems are now replaced by the advent of flex–Ahmedabad is no different. According to our India Office Figures Q1 2022 report, flexible space operators in Ahmedabad are driving the city’s office space absorption alone accounting for a massive 20% share in office leasing.

An unusual trend, however, that is dominating the Ahmedabad flex industry is the rising demand for co-working spaces. With the economy steadily opening and people returning back to offices, there is an increase in start-ups, freelance work, ITeS & the need for tech-smart offices in the city, which is contributing to this trend. As a result, major co-working space providers are expanding their portfolios in Ahmedabad exponentially.

Factors Behind the Rise of Co-Working in the City

Flexible, affordable & smart, co-working spaces are taking over the office sector. While co-working spaces have always been popular in metros with multiple co-working giants having offices in Delhi-NCR, Mumbai & Hyderabad, these are now spreading to the uncharted territories to tap the opportunities available in cities like Gujarat. As office rentals continue to rise across the nation, co-working spaces have provided an opportunity for start-ups in these areas to create a space for employees to collaborate & innovate in a flexible environment without burning a hole in their pockets. Here are some key factors driving the co-working demand in Ahmedabad:

1.??????Remote Hiring: Today, organizations are distributed across the globe as companies have realized the power of remote working during the pandemic. Co-working allows companies to source talent from distant corners of the globe while also providing employees with an office-like experience.

2.??????Scalability: The headcount of startups is always in flux–co-working turns out to be the perfect solution to meet the ever-changing headcount in such organizations, allowing them to scale up or down their office space without signing long-term detrimental agreements with traditional office space providers. Various co-working space providers are also rolling out Flexi Passes and on-demand consumption models to facilitate remote working and provide more flexibility.

3.??????Niche Space Offerings: An emerging co-working trend that has taken the industry by storm is niche space offerings. Various co-working organizations are springing up to create industry or demography-specific spaces–these could be dedicated to women-only start-ups, health-tech organizations, IT companies, and more. While it is relatively new in Ahmedabad, this trend could become significant in the years to come.

4.??????Full Service at Fractional Cost: Co-working spaces provide the facility of a full-service office at a limited liability and fractional cost, which makes them a preference of many professionals.

While co-working spaces have always been around, the pandemic has given a push to their adoption. Today, not just start-ups but reputed organizations too are exploring the trend as they decentralize their operations to facilitate remote hirings and avoid future disruptions. As the absorption of co-working spaces is on the rise in Ahmedabad & beyond, there seems to be an increased focus on health & safety measures as occupiers stress safeguarding their employees against potential outbreaks. Technology is another factor that is shaping the co-working sector as space providers go on to embrace telecommunication, advanced physical hardware & project management tools to create a unified and unmatched experience for users.