Changing work styles fueling demand for coworking spaces

Demand for coworking workspaces in the Philippines is expected to rise amid easing inflation and as companies shift to flexible, short-term leasing, analysts said.

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"The recent drop in inflation to 1.4%, coupled with the Bangko Sentral ng Pilipinas' (BSP) guidance toward gradual interest rate cuts signals improving macroeconomic conditions, setting the tone for renewed business confidence and investment activity," Ruth Coyoca, assistant vice-president for sales and business development at Greatwork Global Workspaces, said in a Viber message.

"For the coworking industry, this shift presents a significant upside," she added.

The coronavirus pandemic has accelerated companies' shift to flexible workspaces amid changing work styles. These include coworking spaces, hot desk and virtual offices and hybrid workspaces.

Ms. Coyoca said further rate cuts by the Philippine central bank could encourage both big and small companies to take up more flexible workspaces.

"Lower interest rates enhance liquidity and reduce the cost of financing, encouraging startups, small and medium enterprises and large corporations alike to explore expansion strategies, including new project teams and satellite offices," she pointed out.