Co-working to face the brunt of the pandemic
India’s commercial real estate which has been doing good for last two years is likely to be impacted for short term due to covid 19 nationwide lockdown. The fresh leasing and individual investments in real estate will be deferred for some time. The coworking industry is the one which will be impacted little bit temporarily as 100% revenue is from subleasing and most of the customers are startup clients. However, in short term it will be picked up as companies look for flexible work space instead of long lockins and huge investment of capex. To come out of this situation the coworking association initiated re negotiations on lease contracts on rent , revenue sharing models with landlords , waiver of rent etc . For real estate sector to be back at pre Covid-19, it may take anywhere between 12-18 months. For co-working space sector, it is a period of 4-6 months to bounce back.
BY Sundari Patibandla , Founder and CEO
iSprout co working space