Mumbai Serviced Offices Sector Growing 25% Annually
The number of corporate businesses and entrepreneurial start-ups opting for serviced offices, flexible spaces, and virtual offices is increasing at an unprecedented level, according to research by Regus India.
The serviced office sector is expected to grow by up to 25 per cent year-on-year, with the market already estimated to be worth $700 million.
"Serviced offices are popular among new companies and SMEs, as they provides flexible working conditions. Such set-ups also help companies in managing expenditure, especially when growth cannot be projected," said Viral Desai, director of Knight Frank India.
The serviced office industry in India has been particularly prominent among multinationals setting up office in the country, though it is being rapidly adopted by domestic firms.
"At present, the Mumbai serviced office market here is at a very nascent stage, but it works best in times of turnover pressure. It offers saving to the clients, as they do not have to spend on renting an [entire] property and setting up office infrastructure," said Sahil Verma, Regus India CEO. "We expect this market to grow by 21-25 per cent each year."
A virtual office solution is another viable, almost recession-proof option for SMEs. Clients take full advantage of a prestigious business address in an affluent area, including the right to utilise it on business cards, letterheads etc., without the significantly larger expenditure involved with physically occupying the space. Clients are even invited to make use of board or meeting rooms in some cases.