While one might be wondering how a few people sitting together can change the entire landscapes of real estate, work- life balance, socioeconomic conditions and innovation, he needs to question his definition of the concept of coworking.

Considered to be one of the fastest growing sectors that promotes entrepreneurship, freewill, innovation, creativity and collaboration, there are several factors which play behind the screens for this exponential growth. Here are the key growth drivers of this industry:

  • Rise of Technology – The widespread use of the internet and instantaneous connectivity has changed the way people work. You no longer have to sit at a boring desk to get work done. Rather, you could be sitting on a beach in Bali and delivering results to your clients. Moreover with productivity and collaboration tools like Asana, Slack, Skype and others, people are always connected.
  • Work Life Balance – With the millennial generation taking over, health, well being and more personal time are taking center stage and employees are demanding more and more flexible workspaces that cater to their needs and belief systems.
  • Birth of Sharing Economy – Take the likes of Uber, Airbnb, and Wework. All of the platforms utilize limited resources for a larger audience. It basically means access to resources at lower costs and maximum convenience. We are moving towards eliminating the hurdles of ownership, liability, security and maintenance.

The corporate downsizing, unhappiness of today’s millennial with traditional jobs, long commutes, the growth of gig economy has contributed to the growth of coworking.

Imagine a large group of extremely intelligent people from diverse backgrounds under one roof. Imagine the idea bounce, networking and collaboration that could happen among these minds. That’s exactly the lure that’s attracting some of the best corporate teams, freelancers, creatives, entrepreneurs and digital nomads to coworking spaces around the world.

The changing and challenging work environment has also forced companies to move to flexible spaces to drive their costs down. This helps them in reducing liabilities and real estate risk considerably. As more and more work will be outsourced and automated, it is estimated that about 30% of the total corporate workforce will work out of coworking spaces by 2025.

Our own country, India, has 15 million freelancers working out of non traditional spaces and this number is estimated to hit 60 million by 2020. Now, all these innovative and creative minds need to work out of collaborative spaces that are sprouting in large numbers.

These are some of the many reasons that coworking is hailed as the future of work. We just have to wait and see what this burgeoning industry has to offer in the years to come.