Rents for co-working spaces are substantially lower than traditional office spaces in cities

Anil Urs Bengaluru | Updated on March 11, 2020

Co-working spaces are available at a substantially lower price compared to traditional office spaces in major cities.

“Price difference of 15 per cent over traditional spaces across major cities is visible. While Pune offers the maximum cost advantage of 33 per cent, Gurugram in NCR offers the least at 6 per cent, in MMR it is 14 per cent, Bengaluru 20 per cent, Chennai 9 per cent and Hyderabad 10 per cent,” said Anuj Puri, Chairman – Anarock Property Consultants.

“While start-ups and budding entrepreneurs make a beeline to co-working spaces, large corporates remain wary of depending on them for their expansion. This trend is quite contrary to what is witnessed in developed European nations,” he added.

“Despite the indubitable upsides of co-working spaces, they do have limitations. Apart from most of them lacking separate canteens or pantries for occupiers, they also bar corporates from organising events in common areas. Maintenance of these properties is another challenge,” explained Puri.

In Bengaluru, co-working spaces in key areas such as MG Road, Millers Road, Vittal Mallya Road and Residency Road. The average monthly rental for flexible workspaces is between ₹7,500-15,000 per desk while rents for that for traditional office spaces rent out at ₹10,000-18,000 per desk.

In MMR, co-working spaces in key micro-markets such as Ballard Estate, Colaba, Churchgate, Fort and Nariman Point. The avearage monthly rentals in co-working spaces is between ₹18,50 -28,500 per desk, while for traditional office spaces it hovers between ₹24,500-30,000 per desk.

The average monthly rentals for flexible workspaces in Chennai’s key areas such as Anna Salai, Nungambakkam and RK Salai are between ₹6,000-14,000 per desk as against ₹7,000-15,000 per desk for regular office spaces.

In Hyderabad, co-working rentals in key office areas like Gachibowli, Madhapur, Manikonda and Kondapur range between ₹5,000-8,000 per desk, as opposed to ₹6,000-9,000 per desk in traditional office spaces.

In Gurugram, flexible workspaces command monthly rentals of ₹9,000-14,000 per desk, against ₹9,500-15,000 per desk in regular office spaces. “The price difference is low in Gurugram because of the massive demand for co-working spaces in the CBD areas. Also, considering high demand for commercial spaces in Gurugram, supply for Grade A commercial office spaces is low in the city.”

Published on March 11, 2020

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