APAC Flexible Workspace Industry growing with Increasing Real Estate Cost, Accelerating Average Centre Size, Changing Workforce and Changing Business Cycles: Ken Research
“India and China dominate the supply of flexible workspaces in APAC with a combined contribution of more than 60% in 2019”.
Increasing Real Estate Cost: Economic development has lead to increase in real estate cost in APAC. Real estate cost is the second largest expenditure for companies after employee pay. Various large enterprises are continually looking to convert this CAPEX to OPEX by shifting to flexible workspaces which enable them to avoid the cost of long term leases and also helps them in facing the growing number of business uncertainties. Hong Kong, Tokyo, Sydney, Melbourne, Beijing, Singapore, Shanghai and Seoul are few of the expensive cities in APAC.
Accelerating Average Centre Size: In countries such as China, India, Japan, Australia, Singapore and Philippines the average co-working centre size has drastically increased. In India, Smartworks has leased 0.5 million sq ft to create a flexible workspace which will be operational by 2021. In Tokyo, average space per co-working centre has been increasing with a CAGR of 49.2% during 2016-2018 and in Singapore it is increasing with a CAGR of 20.8% during the period 2015-2019.
Changing Workforce: Technological up-gradation has lead to the development in gig economy and has given traction to the concept of teleworking. The upcoming millennial workforce value work-life balance and therefore they demand flexible working hour and flexible working location. The number of start-ups and entrepreneurs has drastically increased in APAC. The number of unicorn start-ups in China has increased from 56 in 2017 to 206 in 2019. In India, the number of start-ups has increased from 33,000 in 2014 to 55,000 in 2019. In Japan, the number of freelancers has increased from 9.1 million in 2015 to 11.7 million in 2019.
Introduction of Nomadic and Niche Co-Working: Flexible workspace operators are looking to introduce flexible workspaces at unconventional locations such as malls, restaurants, cafes, metros, hotels and others. For instance, Regus has multiple locations in malls such as in U B City, Bangalore. In order to target different groups of the working population flexible workspace operators are developing co-working spaces for a particular target audience such as women, musicians, painters and working parents. Niche co-working is gaining traction particularly in countries such as Australia, Japan, Philippines and Vietnam.
The report titled “APAC Flexible Workspace Market Outlook to 2025- By Type (Hybrid Spaces, Serviced Spaces and Co-Working Spaces), By Country (China, India, Japan, Philippines, Australia, Vietnam, Singapore and South Korea) and By End Users (Enterprises, MSME’s/Start-Ups and Entrepreneurs/Freelancers)” by Ken Research suggested that the flexible workspace industry in APAC has drastically grown and supply and demand has been growing with a CAGR of 32.5% and 40.2% respectively during the period 2016-2019. The industry has been evolving ever since its inception, with major trends in the industry being growing number of local players, changing amenity mix or amenitisation, increasing market consolidation, development of premium design workspaces at premium locations and increasing landlord participation.
Key Segments Covered:-
By Type of Flexible Workspace
Ho Chi Minh City
By End Users
Key Target Audience:-
Flexible Workspace Operators
Commercial Real Estate Companies
Venture Capitalist and PE Firms
Real Estate Consultant
Office Furniture Providers
Time Period Captured in the Report:-
Historical Period – 2016-2019
Forecast Period – 2019-2025
Companies Covered in the Report:-
APAC Flexible Workspace Market
The Executive Centre
Local Players in India Flexible Workspace Market
Awfis Space Solutions
Vatika Business Centre & Co-working Spaces
Local Players in China Flexible Workspace Market
Local Players in Japan Flexible Workspace Market
Mitsubishi Estate (BRANDS: Finolab, The Premium Floor, Inspired.lab, Global Business Hub, EGG JAPAN)
Local Players in Australia Flexible Workspace Market
Asia Pacific Serviced Offices
Space & Co.
Local Players in Singapore Flexible Workspace Market
The Work Project
The Great Room
Local Players in Philippines Flexible Workspace Market
KMC Co-working Space
Project T Solutions
Local Players in Vietnam Flexible Workspace Market
Local Players in South Korea Flexible Workspace Market
BIZSQUARE & MoA
For More Information, refer to below link:-
India Flexible Workspace Market Outlook to 2025- By Type (Hybrid Spaces, Serviced Spaces and Co-Working Spaces), By City (Bangalore, Mumbai, Delhi NCR, Pune and Hyderabad) and By End Users (Enterprises, MSME’s/Start-Ups and Entrepreneurs/Freelancers)
Ankur Gupta, Head Marketing & Communications