Housing prices as location determinants of Coworking Spaces in non-urban areas – a comparative approach between UK and Germany

Thomas Vogl, Fernanda Da Silva and Husain Vaghjipurwala

ERES from European Real Estate Society (ERES)

Abstract: Coworking Spaces first appeared in large metropolitan cities, with a concentration of urban amenities and proximity to high-skilled workers, business hubs and public transportation. The coworking concept is still evolving, considering spatial changes, new governance structures and proliferation from urban to remote, peripheral and rural areas. This development goes along with the pressure of land and building prices in the core of EU metropolitan areas, CSs are pushed outside the central business districts towards peripheral neighbourhoods or to deprived inner-city areas with affordable rents. Recently peripheral areas started to attract a growing number of coworking spaces in various European countries. There are different pull factors behind the emergence of CSs in these areas. While other researchers recognize the benefit of the low rent prices in rural real estate markets and associate the establishment of coworking with availability of affordable renting. It is becoming acknowledged that the factors behind the emergence of CSs in peripheral areas are miscellaneous. However, it is recognised that this relation is weak and ambivalent. By arguing that location factors of housing and CSs are similar but not the same, we open up the real estate perspective and follow a broader view on the success factors of coworking spaces. Based on the desk research, the authors constructed their own database of CSs in Germany and the UK. The authors gathered data on the residential prices and rents on a district level. To identfy real market differences between districts with and without CSs, the authors applied statistical analysis for independent samples. The research shows that periperheral locations are attracting CSs to significant extent and that CSs are attracted by different determinants. The authors argue that the role of CSs in rather limitited in attracting real estate investors and boosting the real estate market in periphereal areas. The focus of this study (CSs in peripheral areas) and the comparitative approach is original. Additionally, applying the housing prices to study the location of CSs is novel as well.

Keywords: Coworking spaces; Germany; housing market; Peripheral areas (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2023-01-01
New Economics Papers: this item is included in nep-ure
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