How are coworking spaces redefining the real estate Industry

Real estate is a booming industry. It can multiply the amount of money put in. It is an active form of investment and is a key factor in determining the commercial success of individuals and organisations. Yet, the real estate industry is a very dynamic and mercurial sector. The rates of the property may touch skies or even sink deep down within a short period of time.

A classic example of how consumer preferences alter the course of the real estate industry is the ever rising inclination towards online shopping. This led to the decline of retail shopping by millennials and therefore, reduced the demand of properties being occupied by supermarkets and grocery stores. Similarly a wave of change in commercial properties is in crest too. The favouring of entrepreneurs, multinational companies, conglomerates and even freelancers is flipping the fate of commercial properties and the  archaic customs of decade-long leases.

Startups and SMEs are always hunting for a good place at the prime locations in the major cities around the world. Renting and leasing their own space in a new country may seem risky and too costly. The panacea of such a situation is to follow a dual approach which involves leasing their own place, besides being economical and cost-saving; which is equivalent to a coworking space in Mumbai. The way coworking is revolutionising the real estate sector can be roughly discussed under three subheads which are as follows

1. Land and property owners:- Since the time immemorial investors were interested to buy huge properties in commercial as well as residential localities and lend it to tenants on a contract or lease that lasted for a decade. This had two major loopholes. One, now that these times are uncertain and unsure, corporates are not willing to sign contracts that span over longer periods of time. And secondly, with the advent of globalisation business corporations prefer to have numerous smaller branches in different parts of the world rather than  one large office at a single location. The solution to this would be renting out a single space to various companies on short term flexible leases, in short- coworking spaces. More people are introducing packages ranging from just a single desk to occupying an entire shared office space.
2. Companies and individuals that choose to work:- Earlier, starting a business wasn’t easy. It needed heavy investments and loads of marketing by conventional media of communication. Now, starting a new business isn’t a  bigdeal. It just requires some funding and lots of social media marketing. Firms can become a success overnight . For this tremendous change, many factors are responsible. First and foremost, meagre rents, cost-effectiveness and cutting of overhead costs is a propeller because it decreases liabilities and maximises profit.  Now real estate is not about huge buildings and A-class furniture. It is all about smaller places with maximum utilisation. It is about identifying a perfect location for an array of offices and harnessing its utmost potential to be useful.
3. Miscellaneous public associated with the real estate sector:- Gone are the times when conventional 9 to 5 workers were considered successful. Now is the time of entrepreneurship, self-employment, freelancing and start-ups. As this trend is growing enormously, so is the need for physical spaces. Real estate is a risky forte. It requires long term investments for short term returns. But in India, post demonetisation and the covid crisis, liquidation of money is tough and to channel those investments into other properties is insecure. Therefore, estate agents are turning towards a safer option of coworking spaces.

All in all it can be seen that plug and play offices are in an upward trend globally and it has a positive effect on various related industries, most importantly the real estate industry. According to reports around two thirds of coworking companies are planning to expand their operations by 70% and one third of coworking companies are planning to open another branch at a different location. This clearly proves that an amplifying coworking business is directly proportional with a boom in the real estate industry. Visit iKeva now for a shared office space package that is ideal for you.