COVID-19 impact: Co-working spaces in demand as companies look to cut office expenses amid lockdown

Pune: A number of measures are currently being taken by companies to reduce costs due to the impact on its operations and business. Several companies - big and small - have instructed their employees to work outside the office and as a result co-working spaces demand is on the rise.
The Covid-19 outbreak situation is taking a heavy toll on many industries. Start-ups are also suffering.

As a result, it has become difficult for many to run a company by renting or owning an office. These companies, new-age entrepreneurs are making co-working spaces available for their employees at a much low cost. Employees are also preferring to go and work at a shared location considering the challenges of working at home.
According to a survey by Knight Frank, the demand for co-working spaces in Pune has grown by 38 per cent in the first half of this year. Pune along with other cities is witnessing a surge in demand of such shared work places. The start-ups and Small and Medium Enterprises (SME) are the biggest contributors to this demand, according to the respondents in this survey.

What is a co-working space?

The concept of co-working involves renting a table space to several professionals or employees of a company at a shared location. There is a fixed term agreement between the provider and the user. Several entrepreneurs, self-employed professionals work through this shared location. They are provided various facilities like a conference room, cafeteria, discussion room etc., as per the demand.

Limitations of working from home
Currently, a large number of employees are working from home. However they are facing problems like insufficient availability of space, lack of conducive environment and facilities required for work.

SECTOR-WISE DEMAND FOR CO-WORKING SPACES

• Telecom, e commerce, consultancy services: 17 per cent
• Information Technology: 38 per cent

Source: Knight Frank Survey