Thriving In Smaller Markets
Coworking has become the new normal, as workers around the world crave a more flexible work environment. These coworking industry statistics show that in some countries, coworking spaces aren’t just existing; they are thriving. Here are the top five countries with the highest coworking growth, and why they might be the best place to open a coworking space.
Luxembourg tops the list, with a coworking growth of 8.5 spaces per capita. The fact that this small country with only 599,000 people is leading the pack in coworking growth should come as no surprise. Luxembourg has consistently ranked high as the best country for business by U.S. News. It is also ranked as the second highest country for having a favorable tax environment and is ranked highly for transparent government practices and corruption.
Business is allowed to flourish in Luxembourg, with extremely favorable tax laws for both small and large companies alike. These incentives strongly encourage more people to open a business in Luxembourg, and even to move their business into the small country. Because of this, coworking spaces have popped up to meet the demand, making it a hot spot to open a shared workspace right now.
Back in 2012, the Singapore government issued grants to encourage people to open shared workspaces and home offices. While the government did not explicitly promote the development of coworking spaces, it did help create a sense of flexibility and opened up the market.
Coworking spaces have changed the startup scene in Singapore. In recent years, the island nation has overtaken Silicon Valley as the world’s number one spot for startup talent. Due to Singapore’s government subsidies, ease of starting businesses, and convenient location in relation to the rest of Southeast Asia, the country has become a magnet for startups, who then flock to coworking spaces. Singapore is primed for more growth, and if you are interested in entering into the Asian market, this is an excellent place to start a coworking business.
Ireland boasts the third most coworking spaces per capita, perhaps because it cracked the top 15 of the best countries for business according to Forbes. Ireland is still seeing strong job growth and low inflation, which is encouraging more people to open startups. Technology companies in Ireland also have a 25% tax credit against research and development costs, so it is encouraging for tech startups to work outside of traditional offices and in coworking spaces.
While Ireland has a positive business environment currently, just like in the UK, we haven’t truly seen the effects of the Brexit decision. It might be years before the full effects are seen, and whether or not it changes the business scene and coworking market in the future. However, it does continue to be a desirable place to start a coworking space.
Coworking is thriving in New Zealand, with 4.2 spaces opening per capita this year. One local property advisor in New Zealand believes that shared offices spaces might even outnumber offices with traditional leases soon. As a smaller nation, New Zealand can truly benefit from coworking spaces because the flexible workspaces let them tap into the global network more efficiently. New Zealand's tech investments and companies have grown more than eight times since 2011, and that increase encourages startups to join coworking spaces.
Spaces, a coworking company, has rented a few properties in Auckland to increase its number of desks, while WeWork is also expanding into New Zealand, and adding more than 1000 desks into the area. For an individual coworking owner, there might be an added pressure to compete against larger companies lie WeWork in the major hubs in New Zealand. However, since it is clear the demand is there if you can create a niche community and a unique brand your space, it can be a positive place to start a coworking space.
While the UK only has the 5th highest density of coworking spaces compared to its population, London is the city seeing the most coworking growth in the world. Coworking industry statistics show that every five days, a coworking space opens in London, displaying the popularity and influence that coworking has over the city and country. Because there are so many different spaces opening every day, the owners must fight to create a unique brand and market to a specific community.
The UK has seen a considerable increase in startups over the past few years, and many are drawn to the benefits of coworking spaces. The flexibility and growth, as well as networking opportunities, have proven to be beneficial to its startup members. While there is some uncertainty about the country’s status in the European Union, it can still be considered an excellent place to open a coworking space simply on the strength of the tech industry and international enthusiasm for coworking.
Save your community manager 41 hours each week—learn how The Yard did it with cloud-based access control.Read the Case Study