Approx. 13 million people in India are going to work only from Co-Working spaces

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It is noted that the demand for co-working spaces & serviced offices is found the most in the Asia Pacific than anywhere else in the world. As per a report from JLL, India’s growth of flexible office space is expected to grow at 40%-50% this year! The shared offices or co-working spaces demand is gaining a lot of popularity across the country.

Mr. Sandeep Sethi — MD, Integrated Facilities Management West Asia, JLL in an interview with RealtyNxt said, “In India, the co-working segment is expected to grow by 40–50% in 2018 alone. By the end of the year, we anticipate flexible workplaces would attract investment up to US$ 400 million. With over 200 premium business centers across the country, set to double by 2020, co-working spaces will reflect the global trend of being closer to 20% of the total work-space.”

This trend is due to rise of the millennial and a large, vibrant start-up ecosystem which is observed across the country. The change in youngsters thoughts & the way they work has change dynamics of business.

From the market size of about 13.5 million users by 2020, half of it will be from enterprises which should take up 10.3 million seats. 1.5 million users worth of demand will come from freelances and small and medium enterprises (SMEs). The startups will demand up to 100,000 seats by 2020.

Top 6 cities in India will need approximately 5 million seats in co-working spaces while the tier II and III cities will have projected demand of 8.5 million indicates JLL India.

India’s office space market absorption increases by 25% in Q1 2018

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Office leasing activity across India’s top 8 markets increased by 25% in Q1 2018, according to a recent report by CBRE South Asia, a real estate consulting firm. The Supply of office space tripled at 9.7 million sq ft during the said quarter. More than 80% of this new supply was in Bengaluru, Mumbai, Chennai and Delhi-NCR.

An estimated amount of 11 million sq ft of space take-up was recorded in the said quarter.

The highest demand for office space was recorded from Bengaluru, which beats cumulative space from cities like Delhi-NCR, Mumbai & Hyderabad during the first quarter of 2018 (Jan-Mar).

As per an article in Economic Times, Mr. Anshuman, chairman (India & SE Asia), CBRE said that India is preferred market as the International & Domestic Occupiers have grown, and it offers quality office spaces at reasonable rents.

Tech corporates led office space take-up during the quarter with a 25% share, while BFSI firms garnered a 24% share. The share of e-commerce firms rose to 15%, thanks to a few large-sized deals by leading global and domestic players.

During the quarter, 45% of all the transactions were for small-sized spaces while mid-sized transactions accounted for a 42% share. There were a few large-sized deals, most of which were recorded in Bangalore, followed by a few in Mumbai, Delhi-NCR, Chennai and Hyderabad. (source: The Economic Times)

This is a great news for all the commercial office space property developers. Bengaluru definitely has no dearth of office spaces, but quality office spaces are the ones who are attracting good clients.

How Gen X and Millennials behave at Work

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Generational groups have different norms and behaviors that impact the workplace — positively and negatively. Each generation believes that its work ethic is “better and/or stronger” than that of subsequent generations. Each also believes that theirs is sufficient and appropriate.

In 1987 the world was introduced to the term millennial, named for the high school class that would graduate in 2000. Commonly portrayed as idealistic and overzealous, the story we often heard over the years was that millennials were more likely to be talking about their passions than doing their day jobs. For the youngest members of our workforce, the things that typically mattered most at work were happiness and fulfillment.

There actually four generations represented in today’s workplace: Baby Boomers, Gen Xers, who have taken over many senior leadership roles, Millennials, whose younger members will be the next generation of managers, and Gen Z, who is just entering.

Having said that, GenX and Millennial are the two biggest generations in the workplace right now. It is very important to understand how these two work at workplace. For your reference, Gen X are those born between 1965 and 1980, and Millennials are those born between 1981 and 2000s.

Before we begin, let us understand that, when Generation X was stepping into the professional world, the world was entering an era of economic growth at a snail’s pace. There were not many job openings, and an increase in divorced parents meant sharing responsibility at an early age

On the other hand, the Millennials were born into an epoch of rapid technological advancement where internet and communication played a vital role in the society.

Now, due to the said fact, the way of working has a huge difference in both these generations. Let us understand each one by one;

We would first understand how both the generations balance their work life. Both the generations do not have much differences, except as to how they want their work life to be balanced. Generation X, for instance, ask their employers to comply with strict 9 to 5 office hours, and for them, working extra hours is highly unacceptable. In some cases they may actually even leave the work if pushed constantly extra. Whereas, for Millennials, the concept of work-life balance means telecommuting, flexible work hours and relaxation opportunities on the office premises. They don’t mind spending extra hours at office as well.

Secondly, the working style — For a Gen Xer, staying at office and working is a commitment towards work. On the other hand, for Millennials 2 hours of Work from home can mean a full day;s of work commitment.

The concept of hierarchy is also pretty contrasting for the two workforces. Xers believe in proper step-by-step power structure where a boss is a symbol of authority. Millennials, on the other hand, believe in “flat hierarchy” where the executives, managers and directors are simply each other’s colleagues. Also, Millennials tend to take the boss as a mentor and expect acknowledgement and regular feedback.

Generation X thinks that the corner office and higher posts come from years of hard work, experience and expertise in the field. In their views the path to promotion is long, hard and inevitable. Therefore, when Xers get into managerial positions, they demand deference, with a concept that access to authority is limited and must be earned.

For Millennials, the lack of experience is not much of a bother if you are good at your work. They can climb up the ladder by just using their wits in a very short time!

The factors that motivate the two generational cohorts also vary on contrasting levels. Generation X, for instance, is often driven by authority, autonomy and job security. Their loyalty towards work and the boss they work for also acts as a stimulus.

Where Xers’ concept of professional achievement is the corner office with heavy oak door, Millennials find bean-bag, laptop and unlimited WiFi as one of their main motivational factors. Millennials want to find purpose in their toil and their career along with learning opportunities from their employer.

Here we should mention that financial gains like salary, perks and benefits are one of the foremost motivational factors that drive both generations towards a career path.

The above is just to give you a glimpse on how the difference in thoughts or work may arise, but end objective is same. Both the generations can learn something from each other. We are confident, that a balance between both these generations in any organization, will make the company prosper.

In India, 55% of Millennial choose jobs based on the office space

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In India, 55% of Millennial choose jobs based on the office space! Surprising isn’t it? You may wonder who are these millenials. Millennials in India, are the youngsters who are between the age of 18–35yrs. They are the chief earners with 47% of share in the working population. These millennials are rapidly growing source of spending power. Their growing influence is already driving new trends in real estate markets across the region, making it essential for occupiers, retailers and developers to gain a thorough understanding of their behaviours, requirements and priorities. Millennials are often perceived as preferring informal employment, changing jobs regularly and avoiding financial responsibility.

Companies should utilize their office space to attract good talent. The importance millennials place upon their office space was reflected by a large majority of respondents (as per the research conducted by CBRE) who said they would be willing to make sacrifices such as moving to a less attractive location or travel further to work. This suggests that high quality offices in suburban locations can be viable options for companies seeking to attract millennial employees.

Millennials seek work that provides them with inspiration, responsibility and career progression. While salary and benefits are still the main draw, millennials also consider lifestyle elements such as office design, flexibility, location and commuting time. Millennials view their office and its immediate
surroundings as not just a place of work, but as a community where they can relax, socialise and engage in other activities.

Finally, companies need not confine themselves to locations in city centres — millennials are happy to work in decentralised areas, as long as transportation networks and supporting facilities are of a high standard.