Collaborative Spaces in a Dynamic World Order

India – November 2020

SPOTLIGHT Collaborative Spaces Savills Research in a Dynamic World Order Collaborative Spaces in a Dynamic World Order

Contents 03 Preface

04 Dynamism in the Current Decade

06 Coworking Landscape: India & The World • India: Second Largest Preface • Large Coworking formats in India compared to the world average Disconcertingly similar to some economic devastations of the past, • Tech cities in India to lead the Coworking activity • Holding Advantages: Coworking vs Traditional Leasing Mindset such as those caused by the dotcom burst at the turn of the century or the Global Financial Crisis of 2008, the current pandemic has tested social and economic resilience in the extreme. If the degree of severity were to be measured qualitatively, the “VUCA” (Volatility, Uncertainty, Coworking: Future Scenarios and Projection-Model 11 Complexity and Ambiguity) is significantly pronounced this time. • Evolving Operator Strategies Figuratively, it has thrown a blanket of impact has been severe on those real estate developers and occupiers from different parts uncertainty and despair across the world, segments, which were at the forefront of of the country. as economy and business prospects fell progress. One among such frontrunners was Across the world the current pandemic is Coworking Universe: Preferences and Viewpoints drastically in 2020. The projections for the Coworking. 15 likely to usher a new age. The times ahead • Occupier Perspective first half of 2021 remain uncertain too, if not entirely damaged. In this report, our endeavour is to give you are being shaped by Artificial Intelligence, • Developer Perspective a three-phased picture regarding the future Machine Learning, Data Analytics, Cloud Nevertheless, the positive news is perhaps of Coworking. In the first part, we lay the Computing and such technological evolutions. buried deep inside the same kernel of foundations through an insightful narrative Real estate, like every industry, will adopt uncertainty. A strong recovery from the of the evolution of Coworking, with global these advancements. The impact is already Prognosis and Uncertainties slump appears to be inevitable. By various comparisons. The second part, then, deals in evidence, whether in space-design, 18 projections, such as those by IMF’s World with economic impact points of the current development process-flows, building control 1 Economic Outlook , India should be able to event and leads to an econometric model of systems, services, or even in real estate grow more rapidly in 2021 than most world the future. While we have given a summary transactions and payments. economies. In our estimation, the hope is picture of possible future paths, we remain Coworking too, like other sections of mainly based on two factors: global progress aware of the dynamic scenario in today’s Acronyms on the medical front to counter the virus, and commercial real estate, is on the cusp of world. The scenarios will need to be updated 20 the ongoing policy & fiscal stimulus in recent these changes, as it looks to regain the lost frequently and revisited at intervals. We times. momentum in the post-COVID dynamic world remain committed to this goal. In the third order. For real estate, the VUCA led deceleration part, we cover the viewpoints of various 20 References & Suggested Readings has been different for different segments. The stakeholders – as evinced through a survey of 1 Refer International Monetary Fund’s World Economic Outlook, October 2020

savills.in 2 3 Collaborative Spaces in a Dynamic World Order Collaborative Spaces in a Dynamic World Order

Dynamism in the Current Decade The office, as a physical space, has undergone a series of transformations over the last few years, with new age corporations using technology extensively to define workplaces.

Over the last decade, cabins, private it has been one of the leading demand from anywhere or near clients. Among offices and cubicles with space-ratios drivers of office space leasing in India, other things, the latter occupier strategy of 120-150 square feet per person with its annual share rising from around is the one that is heavily dependent on the progressively transformed into agile 5% in 2016-17 to almost 15% in 2019. availability of Coworking spaces across the city. workspaces, as the need for collaboration Interestingly, it is at this juncture of gained importance. Employee density Coworking’s super-growth that the The physical location of Coworking, in office spaces increased and the open outbreak of COVID-19 changed the rules therefore, is poised to gain a greater office layouts encouraged collaborative once again, as social distancing and significance in the Coworking ecosystem spaces. The space requirement thumb de-densification of workspace became in times ahead. rule of 100-plus sq.ft. per person reduced imperative. The pandemic has also led It is increasingly evident that the cyclical by 20-30%, on an average. organisations to reassess overall seat behaviour of office space ratios has been requirements, since WFH (Work-from- As a logical follow-through, shared taking organic as well as inorganic turns, home) has entered corporate-policies2. office space emerged as a separate creating fresh norms for areas, as well as asset class, establishing workspace as a As a result, several occupiers are altering locations of workspaces. The scenario, service instead of a physical resource, their real estate strategies, with some apparently, is only unfolding in a new bringing significant cost-advantages. consolidating operations, as others are cycle. It warrants close observations and The occupancies in Coworking, initially exploring ‘hub and spokes’ model where analyses, in the short-term, to decode dominated by start-ups, saw increasing a city head-office operates alongside its path during the third decade of this preference by mid-sized organisations as smaller offices spread across the city, century. well as large corporations. Consequently, offering flexibility to employees to work

Alterations in workspaces

Rise of BPOs De- Densification

Back Offices Hub & Spoke Model +20 sq.ft. Large Space Hybridization Standards of space

100 sq.ft.

-20 Shared Spaces sq.ft.

Densifications of Space

Open Plan & Hotdesking

PRE FIRST SECOND THIRD 2000 DECADE DECADE DECADE

Source Savills India Research

2 Gallagher’s COVID-19 Pulse Survey gave vital indications in this regard. The details of the same are seen https://www.ajg.com/us/news-and-insights/2020/aug/covid-19-pulse-survey-results-work-new-normal/ savills.in 44 5 Collaborative Spaces in a Dynamic World Order Collaborative Spaces in a Dynamic World Order

Tech cities in India to lead the by Bangalore and Hyderabad - the cities the total leasing activity in the Coworking Coworking activity where commercial office real estate demand segment. The overall stock, expectedly, has Coworking Landscape: is generated mainly by technology occupiers. been highly concentrated in these two cities, Predictably enough, the heightened activity in In 2020, as of Q3, these two cities had a and the share is expected to be 51% by the end India & The World the Coworking segment has been dominated combined share of approximately 66% of of 2020.

India: Second Largest Share of Coworking centres by region The century’s second decade witnessed a spurt of Tech cities in India lead the Coworking spaces in the commercial office hotspots of Asia, Oceania, Africa, South and Central America. Not surprisingly, by the time the decade ended, Asia had Coworking Activity challenged the hegemony of Europe and North America and accounted for 30% of the approximately 20,000 30% 5% Coworking centres worldwide. Interestingly the top ten countries have a share of more than 50%3. Asia Africa NCR Large Coworking formats in India 30% 4% 0.3 1.3 1.5 0.2 compared to the world average Europe Oceania 1.9 3.2 4.7 4.9 World over, the average Coworking centre has a capacity Mumbai of around 80 people, and the average space leased by a 0.7 0.6 0.6 0.4 centre, stands at approximately 7,000 sq. ft.4 24% 1% 2.5 3.1 3.7 4.0 In India, however, the Coworking players and operators exhibit greater confidence in the segment. The average North America Central America deal size of space leased by the such players has steadily risen over the past few years and was estimated at 6% around 50,000 sq. ft. in Q2-2020. This clearly indicates the preferences of a dynamic workforce and younger South America demography, which necessitates flexibilities. Flexibilities of design and interiors, collaboration and a sense of community as well. Hyderabad 0.0 0.7 2.1 1.1 Pune 1.9 2.6 4.7 5.8 Source https://www.Coworkingresources.org/ 0.3 0.1 1.0 0.4

Coworking centres-The top 10 countries 1.3 1.4 2.4 2.9

(No. of Centres) 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Larger deals 0 US Bangalore and hybridization India 0.7 1.6 2.3 1.1 of shared spaces has 3.9 5.6 7.8 9.0 UK Chennai been the hallmark of 0.1 0.4 0.6 0.2 markets like India. Spain 0.9 1.3 1.9 2.2 Germany

Canada

Australia Legend

Mexico 2017 2018 2019 2020E Coworking- City wise leasing (in mn sq.ft.) trend

Japan 2017 2018 2019 2020E Coworking- City wise stock (in mn sq.ft.) trend

Brazil 3 https://www.coworkingresources.org/ 4 https://www.coworkingresources.org/ Source https://www.Coworkingresources.org Source Savills India Research savills.in 6 7 Collaborative Spaces in a Dynamic World Order Collaborative Spaces in a Dynamic World Order

keep this asset class afloat are remarkable. The Holding Advantages: Per seat rental range* (in INR per Democratised Coworking vs Traditional two distinct advantages of Coworking in the month) across cities current times, which are likely to continue beyond And Even Demand- Leasing Mindset the COVID-phase, are Base BANGALORE Coworking in India has steadily challenged 1. Remarkably Lower Costs, and The demand base of the traditional office space leasing activity, 2. Wider Rate-spectrum MG Road Coworking is not limited having grown from an approximately 5% share Setting up an office space on a long-term lease 7,000 - 42,000 to start-ups anymore. in 2016-17 to about 15% in 2019. Although the may be financially imprudent for small and ORR Ranging from start-ups, pandemic related uncertainty has impacted medium scale organisations, especially when 8,500 - 25,000 to unicorns, to medium the growth trajectory in 2020 for commercial evaluated on a cost per employee basis. The sized enterprises it is now office markets, it is still expected to Coworking segment plugs the gap with hassle free SBD City increasingly encompassing contribute around 10% of the overall demand services for occupiers and charges significantly 4,000 - 32,000 large corporations. The in 2021 and 2022. lower across a wide rate-spectrum. Coworking sector now caters to businesses across The change in perception and overall CHENNAI The cost differential to traditional office spaces industries and companies. acceptability of working from shared spaces goes up to 45% for occupiers. Even in traditionally CBD can be attributed to a variety of factors, expensive micro markets like BKC and Nariman 6,500 - 23,000 The emergence of India such as flexibility to upgrade and upscale, Point in Mumbai, Connaught Place in NCR and as a start-up powerhouse comparatively lower rentals, growing number MG Road in Bangalore, that have limited office Guindy SBD is also an important of start-ups, or one-stop solution for ancillary space availabilities, occupiers can find Coworking 7,500 - 25,000 contributor to the activities, etc. desks at varied prices. Flexibility in lease terms demand for Coworking and duration, coupled with a lower per employee HYDERABAD spaces. According to NASSCOM and Zinnov’s Two Key Advantages cost across the central and secondary business HiTech City districts of major six cities in India has resulted report on “Indian Tech Despite the existential threat posed to this segment becoming an important part of space 9,500 - 21,000 Start-up Ecosystem”, Coworking by de-densification and lower strategy over the last couple of years. Gachibowli numerous factors such occupancy norms, the key advantages which 9,500 - 16,500 as robust national digital infrastructure, government support MUMBAI and active participation Price difference between Coworking and traditional office BKC from the corporate and 25,000 - 60,000 investors alike, have resulted in the number Nariman Point 15% Bangalore 45% of start-ups growing 9,000 - 45,000 by 12-15% over a 5-year period from 2014 to 2019. Western Suburbs Approximately 9,000 6,500 - 23,000 10% start-ups were newly Chennai 20% Thane formed during the said 8,500 - 28,000 period, with 2019 alone registering an addition NCR of more than 1,300 0% Hyderabad 10% companies. The number Connaught Place of unicorn5 start-ups 22,000 - 50,000 have shown a phenomenal growth as well, witnessing Cyber City 8% Mumbai 35% a 5x growth in the second 15,000 - 35,000 half of the last decade6. Noida Expressway 6,000 - 15,000 Unicorn landscape in India 0% NCR 8% PUNE 2014 2019 2025F CBD 6,000 - 29,000 Number of Unicorns 5 24 100 15% Pune 20% SBD East 6,000 - 25,000 Cumulative (USD Bn) Valuation 10-20 95-101 350-390 Source Savills India Research Source Savills India Research Number of Direct Jobs (000s) 80-85 390-430 1100-1250 Note: The per seat price range and difference as compared to traditional office are average and indicative values.

Bangalore: ORR- Outer Ring Road; SBD City- Koramangala, Indiranagar, Jayanagar Number of Indirect Jobs (000s) 240-300 1400- 1600 3900- 4400 Chennai: CBD- Anna Salai, Nungambakkam, R K Salai, Egmore, T Nagar; Guindy SBD- Guindy Estate, Mount Poonamalle Road Mumbai: BKC- Bandra Kurla Complex; Western Suburbs- Andheri, Jogeshwari, Goregaon Source NASSCOM and Zinnov’s report on “Indian Tech Start-up Ecosystem” NCR: Cyber City and Golf Course Road Pune: SBD East- Kalyani Nagar, Kharadi, Mundhwa, Yerwada, Nagar Road, Viman Nagar, Hadapsar and Kondh 5 Unicorn is a start-up with more than USD 1 billion valuation 6 NASSCOM and Zinnov’s report on “Indian Tech Start-up Ecosystem” savills.in 8 9 Collaborative Spaces in a Dynamic World Order Collaborative Spaces in a Dynamic World Order

These start-ups including unicorns leverage down significantly on fixed costs such as on data security and privacy, the sector is deep tech immensely and are quite fleet infrastructure setup. expected to attract all types of workforce footed which in turn means a dynamic office and organisations- freelancers, start-ups, Coworking: Future Scenarios As more and more Coworking operators space requirement. In addition, the paucity SMEs and large domestic and multinational move towards a model of complete enterprise of funds in the initial stages means cutting companies across industries. level solutions with focussed attention and Projection-Model India has one of the largest office markets in Asia Pacific region. The Sectoral landscape of Indian start-up industry major demand drivers for office spaces have been the IT/ITeS, BFSI and consulting occupiers.

In addition, Coworking players have also The already demonstrated growth and sectoral revival of commercial real estate demand, Enterprise 19% Retail & Retailtech 5% notably leased spaces over the years to become potential, despite the headwinds, brought occupier real estate strategy and availability one of the prominent demand drivers. Despite upon by the ongoing pandemic, highlights the of such centres among others, we have built being a relatively late entrant, the country now inherent demand prospects of the sector. in three scenarios to estimate and project the occupies the second position behind the US in sector’s path forward. As demand for Coworking spaces is driven terms of Coworking centres across the globe7. HealthTech 14% Travel & Hospitality 4% by various factors such as economic growth,

FinTech 10% SCM & Logistics 4% Latest IMF GDP Projections for India indicates a strong recovery HRTech 6% Real Estate & Const. 4% 8.80% -10.30% EdTech FY22 6% Others 28% Growth Rate

Others include media and entertainment, advertising and FY21 marketing, energy and utilities, gaming, legal tech, Source NASSCOM and Zinnov’s report on “Indian Tech Start-up Ecosystem” aerospace and defence etc. Growth Rate

Source IMF (Projections as on 7th Oct 2020)

7 https://www.coworkingresources.org/ savills.in 10 11 Collaborative Spaces in a Dynamic World Order Collaborative Spaces in a Dynamic World Order

Savills Research & Consulting expects 3.4 year 2022 is expected to witness a further 25% sq.ft. in 2021 and 2022 respectively on the back mn sq.ft. of take-up by Coworking players in annual growth and register leasing activity of a strong recovery. Scenario Assumptions 2020 recording an 11% share of the total office of 6.1 mn sq.ft. Interestingly, compared with The inherent strengths of the Coworking leasing activity. Although the overall leasing 2015, the overall stock of Coworking centres in Geopolitical 2nd Wave of Business segment is expected to help the sector tide the Growth Rate activity is expected to reduce significantly in the country is expected to be 4 times by 2022. Scenarios temporary apprehensions. In a post-pandemic The Optimistic Case relies on a strong Tensions Infections 2020 as compared to 2019, owing to delayed In a pessimistic scenario, the Coworking world operators, occupiers and developers economic recovery, absence of geopolitical decision making by occupiers, it is expected to players are likely to lease about 3 mn sq.ft. will reposition themselves and continue to tensions, no further waves of infections and increase steadily over the next two years. gradual rise in profitability for MNCs, start-ups of spaces in the year 2022; Stock meanwhile drive the commercial real estate market of and technology sector companies, etc. The leasing activity by Coworking operators is expected to triple as compared to 2015 in the country. Our projections also indicate the is expected to increase by 42% in 2021 over 2021. However, in an optimistic scenario, the same. 2020, to reach 4.9 mn sq.ft. Going forward, the segment is likely to lease about 6.5 and 7.0 mn.

The Realistic Case assumes moderate economic recovery, minimal geopolitical Overall, the key takeaways, according to our modelling and analysis can be tensions, no subsequent waves of infections and steady business continuity summarised as: for MNCs, start-ups and technology sector companies. By 2022, the 3,000+ The leasing activity by The share of Coworking Coworking centres in Coworking segment space take-up in overall office The Pessimistic Case, assumes a major cities are likely to is expected to see a leasing activity is poised to continued economic slump, heightened geopolitical tensions, second wave of offer approximately 1.0 CAGR of 29% for the rebound to approximately infections and resultant lockdowxns and million desks. 2015-2022 timeframe. 15% share in 2021, similar to business disruption for MNCs, start-ups and technology sector companies. the 2019 level. Source Savills India Research

2021F Coworking in India- Demonstrated growth and potential 6.5 Source Savills India Research 0.70 35.2 Optimistic 7.0 0.84 42.2

2022F 2016 2018 2020E 2021F 1.5 4.7 3.4 4.9 0.16 0.29 0.57 0.67 11.0 17.2 28.7 33.6 Realistic 1.0 2.1 8.1 6.1 0.13 0.19 0.51 0.79 10.0 12.5 25.3 39.7 2015 2017 2019 2021F 2022F 1.8 0.6 30.5 Pessimistic 3.0 Legend 0.67 Leasing (mn sq. ft.) Desks in Coworking Spaces (mn) Stock (mn sq. ft.) 33.5 2022F

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Evolving Operator Strategy The Coworking operators are constantly evolving to cater to the requirements of occupiers. The pandemic has forced many business segments to evolve swiftly, and the Coworking segment is no exception. Some players are repositioning themselves to continue the growth trajectory the sector has been witnessing over the last couple of years. Increasing numbers of players are likely to offer fully managed spaces with enterprise solutions. Growth in non- traditional markets and exiting from unprofitable centres are likely to go in tandem with each other. While attractive discounts, promotional offers and revenue sharing model with occupiers are expected to form the crux of the immediate strategy for client acquisition and retention, niche offerings such as office infrastructure setup at employee homes and customization at employee level are likely to slowly become a part of mainstream product offerings. To understand the current strategy and outlook about the Coworking segment, Savills Research & Consulting conducted focussed surveys amongst leading occupiers and developers in the segment; their opinions augment critical viewpoints in our report and have been presented in the following section.

Coworking operator strategy Coworking Universe:

Fully managed Customization at Reduction in margins spaces with employee level and concentration on Preferences and Viewpoints enterprise solutions offerings volume play While the surveys between occupiers and developers were conducted separately, the results point towards quite a few common insights.

Recovery expectations in H2-2021: Work from Anywhere (WFA): The inferences from our surveys reinforce Majority of the respondents are confident Office markets need to be reimagined, and our viewpoint that the Coworking landscape about a fairly strong recovery in commercial real estate requirements must be recalibrated going forward will be an altered one. Signs real estate leasing activity. As per our survey, accordingly. Work from Anywhere is here of alterations are already visible; they are 35% and 48% of the occupiers and developers to stay- although this does not diminish the expected to metamorphose into a “new anticipated an office market rebound in the importance of traditional office as a place of normal” in the future. The following section second half of 2021. collaboration and social interaction in any way. presents the evolving perspectives of both occupiers and developers.

Revenue sharing Focus on client Centre wise model with retention as well as profitability developers acquisition reassessment

Source Savills India Research

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Occupier Perspective revealed that 81% of the occupiers want Developer Perspective Increased Leasing by Coworking even more flexibility to grow or shrink as players The pandemic led downturn in the economy per business requirement. About 19% think The commercial office markets are now Leasing spaces to a mix of traditional and forced occupiers to focus on business flexi team structure is a key in decision ‘occupier led’ as incremental demand Coworking occupiers is likely to become continuity plans and take cognizance making process - all these insights point for office spaces has shrunk from last the norm. Our survey results also depict of operational expenses. While cost towards a growing demand for Coworking year. The requirements of occupiers that more than half of the developers rationalisation is critical, health, safety spaces in the future. have changed and thus have developer anticipate an increase in the share of and wellbeing of employees has become offerings, as 30% of the developers flexible spaces in leasing acitivty in 2021. Shorter Lock-in and Rent Assessment imperative and of paramount importance. surveyed strongly agreed that technology In fact, 25% intended to begin their own Cycles The aspects below are likely to alter the is going shape the future of workspace. flex space subsidiaries. Coworking offerings in the near future. As per our survey, 61% of occupiers seek Few other interesting insights also shorter lock-in period and rent assessment emerged from the survey. Hub & Spokes Model to gain significance cycles as businesses have become highly About 60% of occupiers believe that WFA dynamic in this pandemic period. Peripheral Areas to Witness Increased trend is likely to stay in near to medium Traction term. Taking cognizance of the same, Technology and Wellness will be the core For employees, time and distance are organisations are likely to switch to a hub of operations important factors as indicated by the and spoke model. A preference for satellite For the organisation, technological survey. 93% want a commute time of less offices close to employee residences robustness at office as well at the employee- than 1 hour. Developers hence foresee and clienteles is expected to be more level holds the key to future growth. Tech- a high demand concentration in the pronounced in the post-pandemic period. enabled offices with enhanced focus on data suburban and peripheral areas of cities. Demand for Coworking in the next 6-12 security, privacy and automation are going Force majeure clause months will also stem from specialised to be the “hygiene factors” even for new Most developers have shown flexibility teams or temporary hires until economic entrants in the business. to occupiers with space requirements recovery is certain. Wellness programs and facilities are the with respect to deposits, fit-out periods Flexibility is the Key other aspects that occupiers will evaluate and common area maintenance during Continuous business reassessment is likely while selecting a Coworking player. An the lockdown phase. Apart from rental to make resizing of workforce quite critical. overwhelming 81% of the occupiers that reassessments with occupiers that 79% Swift scaling up or a hurried scaling down were polled, indicated a non-compromising of the developerss recognise, they are of business will become more pervasive in attitude with respect to social distancing expected to meticulosly and rigourously the new environment especially for small facilitating infrastructure. analyse force majeure clauses among and mid-size organisations. Our survey other aspects.

Occupier Survey Insights Developer Survey Insights

Feel shorter assessment Believe in increase in cycles, lock-in periods and Believe in share of flexi spaces in force majeur clasues are key Focus on rental criticallity of data office leasing activity negotiation points with reallignments and connectivity and occupiers shorter assesment security cycles Feel WFA is Want flexibilty to the trend 93% grow or shrink as 79% going forward Open to mixed Would consider per business leasing by starting a flex space requirement 51% traditional and subsidiary 61% flexible space operators Opine that Consider office Consider AI driven 25% technological 60% infrastructure 81% automation is enabling social Foresee robustness critical important distancing norms supply as important concentration in peripheral 58% 64% areas 83% 83% 51%

Source Savills India Research Source Savills India Research

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At the onset of the pandemic, Coworking of Coworking space- sharing, collaboration at our disposal, one thing has become clearer segment had faced questions with respect to and fraternization with colleagues. However, and lucid. Prognosis and Uncertainties sustainability of the model, as people at large as we have spent more than six months of were sceptical about the fundamental nature fighting the virus with all possible ammunition Clearly the pandemic has ignited a series of discussions on the balance of traditional office spaces, versus WFH and WFA; while Coworking’s existence has been labeled as precariously uncertain, if not bleak. The need for hybridisation seems to have risen sharply Coworking will reinvent and in this phase. reposition itself, emerging stronger In this brief paper, we have used data from Larger players with investor backing and chartered accountant for taxation purposes, recent past and overlaid it on the scenario- financial flexibility are likely to weather the pet-friendly spaces, bank tie-ups for loans, on other side of the pandemic based modelling for future. It is quite probable storm successfully and grow inorganically into community building, concierge services, etc. at this stage that Coworking will take the path newer and untapped markets. etc. are likely to become more prevalent. of evolution and emerge as a growth asset in Coworking taps into residential and retail Players providing a one stop solution with near future. market a bouquet of features targeted at day to day The key features of Coworking economy and Innovation and niche product offerings will operational running of an organisation will business landscape would have a wide array of gradually become a part of the mainstream become the preferred option for occupiers, trends in the near future. ecosystem. Leading real estate developers especially the nimbler ones. Technology driven are likely to explore the attractiveness of autonomous workspaces with smart access, Rise of Coworking platforms community spaces and clubhouses doubling facial recognition and real time security The pandemic is expected to usher the rise up as mini Coworking centres. Coworking monitoring are expected to be the new normal. of marketplace platforms and aggregators operators may also explore the idea of Over the years, the concept of the traditional with sectoral expertise in flex spaces. integration of retail centres and office spaces desk may fade with artificial intelligence, Platforms having a combination of dedicated in the suburban and peripheral districts. machine learning, cloud computing and international and local teams adept at internet of things taking charge of the office as maximizing the use of technology usage are Additional Out of Box Services we know today including Coworking spaces. expected to strike roots. The operators in the shared office space may walk the additional mile to achieve the twin Increased operator market consolidation objective of client retention and acquisition. It is natural that the smaller players in the Additional services like babysitting, a segment have been facing troubled times.

The Coworking crystal ball snapshot

01 06 03 Rise of Coworking marketplace merges platforms Upscale smoothly into 02 residential 05 retail as well complexes double up as Greater business Variety of consolidation centres service on the cards add-ons

Source Savills India Research savills.in 18 19 Savills Savills India Savills in India is a full-service advisor offering Savills plc is a global real estate services provider Savills is India’s premier professional international Commercial Advisory & Transactions, Project listed on the London Stock Exchange. We have an property consulting firm. Savills began its India Management, Capital Markets, Valuations & international network of more than 600 offices and operations in early 2016 and has since seen Professional Services, Research & Consulting, 39,000 associates throughout the Americas, the significant growth. With offices in Bengaluru, Industrial & Logistics and Residential services. UK, continental Europe, Asia Pacific, Africa and Mumbai, Delhi NCR, Chennai, Pune and The blend of in-depth, sector specific knowledge the Middle East, offering a broad range of specialist Hyderabad; and also having serviced clients in with entrepreneurial spirit gives clients access to advisory, management and transactional services Kolkata, Chandigarh, Guwahati, Bhubaneswar, unique and innovative real estate solutions backed to clients all over the world. Vadodara and Indore, Savills India has a strong up by the highest quality of service delivery. pan-India platform to deliver to our clients.

Research Central Management Regional Management Arvind Nandan Anurag Mathur Bhavin Thakker Managing Director Chief Executive Officer Managing Director - Mumbai Research & Consulting Savills India Head - Cross Border Tenant Advisory Acronyms [email protected] [email protected] [email protected] Megha Maan Kaustuv Roy Sarita Hunt AI: Artificial Intelligence Director Managing Director Managing Director BFSI: Banking, Financial Services and Insurance Research & Consulting Business Solutions Bangalore [email protected] [email protected] [email protected] CAGR: Compounded Annual Growth Rate Suryaneel Das Naveen Nandwani Shweta Sawhney GDP: Gross Domestic Product Senior Manager Managing Director Managing Director GFC: Global Financial Crisis Research & Consulting Commercial Advisory & Transactions Delhi NCR IMF: International Monetary Fund [email protected] [email protected] [email protected] INR: Indian Rupee Abhinav Pal Praveen Apte Assistant Manager Managing Director IT/ITeS: Information Technology & Information Technology Enabled Services Research & Consulting Pune MNC: Multinational Company [email protected] [email protected] NASSCOM: National Association of Software and Service Companies Anup Vasanth Media Queries Managing Director NCR: National Capital Region (New Delhi and its neighbouring urban markets. Mainly, Gurgaon, NOIDA & Greater Nitin Bahl Chennai NOIDA) Director [email protected] SME: Small & Medium Enterprises Marketing, Sales and Strategy Sesha Sai [email protected] WFA: Work from Anywhere Managing Director Hyderabad WFH: Work from Home [email protected]

Gurgaon Mumbai Bangalore References & Suggested Readings 3-A, Second Floor, Building 9B 403, Tower B, Level 4, The Capital 15th Floor, SKAV SEETHALAKSHMI 1. IMF World Economic Outlook, June 2020 DLF Cyber City, Phase 3 Street 3, G Block, Bandra Kurla Complex Corporation No.21, Kasturba Road Sector 24, Gurgaon 122002 Bandra East, Mumbai 400 051 Bangalore 560001 2. IMF World Economic Outlook, October 2020 Haryana, India Maharashtra, India Karnataka, India

3. Gallagher’s COVID-19 Pulse Survey: Work in a New Normal (2020 US Edition) Chennai Pune Hyderabad 4. Savills India Research: COVID-19 Nugget Series Transforming Workplaces Savills, 5th Floor, North Wing WeWork Futura Office No. 02A114, WeWork Harmony Square, New No. 48 & 50 Magarpatta Road Krishe Emerald, Hitech City 5. Savills India Research: Fixed to Fliexible: Mapping Workplace & Its Transformations Praksam Street, T. Nagar Pune 411 028 Hyderabad 500081 Chennai 600017 Maharashtra, India Telangana, India Tamil Nadu, India

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Savills, the international real estate advisor established in the UK since 1855 with a network of over 600 offices and associates globally. This document is prepared by Savills for information only. Whilst the information shared above has been shared in good faith and with due care with an endeavour to keep the information up to date and correct, no representations or warranties are made (express or implied) as to the accuracy, completeness, suitability or otherwise of the whole or any part of the deliverables. It does not constitute any offer or part of any contract for sale. This publication may not be reproduced in any form or in any manner, in part or as a whole without written permission of the publisher, Savills. © Savills India 2020.