Recent data from Knight Frank showed that the increasing demand for flexible and co-working spaces is prompting higher absorption of commercial real estate in India.

The first quarter of 2018 has exceeded the annual tally of space occupied by co-working companies in 2017. Co-working spaces occupied 2 million sq. ft. of office space in this year's first quarter with the highest transaction activity witnessed in Bengaluru, NCR and Hyderabad markets, which contributed 43%, 16%, and 15%, respectively.

"Globally, the co-working space has seen a phenomenal growth between 2010 and 2018 and most of the growth has taken place in the last three years. Although the concept is relatively new in India, it has witnessed solid growth from nearly negligible existence couple of years ago to 2 million sq. ft. absorption in just a quarter," said Samantak Das, chief economist & national director, Knight Frank India.

While there is a growing demand for co-working spaces in India, experts also underline the challenges of data security and privacy this segment has to face.

Source