Top 9 Destinations for Setting up a Coworking Space

Today, the freelance economy is booming. According to Credit Summit, there are now 73.3 million freelancers in America, making up 46.25% percent of the workforce. And that number is only going to grow.,

With more and more people striking out on their own, the need for coworking spaces has never been greater. If you're looking to start a coworking space of your own, here are some of the best destinations to consider.

 

Coworking Space Parameters and Considerations

Criteria I have based my recommendations on looking at three basic considerations as well as any additional relevant information specific to that location.

• Potential Market allows us to understand our potential market and set expectations of monthly traffic to any given area.
• The cost of Commercial Real Estate allows for making predictions of the highest upfront cost.
• Competition, tied in with the target audience, allows us to further gauge our likely customer base expectations.

Below is the benchmark I am using, taken from Zoopla, for what I believe to be an average-sized coworking space of 350 sq.m of space.

I’d recommend accessing the Zoopla calculator here to make your own specific adjustments.

 

The 9 Best Destinations for Setting up a Coworking Space

This list of destinations is in no particular order but is put together to cater to varied tastes and differences depending on what you're looking for.

 

1. Bali, Indonesia

Bali is a popular tourist destination that has become increasingly popular with digital nomads in recent years.

The island offers a number of coworking spaces, as well as beautiful beaches and resorts. Bali is also an affordable destination, which makes it an excellent option for those on a budget.

• Potential Market: Approximately 80,000 remote workers/month.
• Cost of Commercial Real Estate: Approximately $ 40,000 USD / 350 sq.m.
• Competition: Approximately 18 other coworking spaces in the most populated area in the south.
• Other Notable Information: As of July 2022, A Digital Nomad Visa is available, allowing for a tax-free, 5-year stay in Indonesia, which has raised its popularity further.
• Helpful resource: Best Bali Real Estate

 

2. Buenos Aires, Argentina

Buenos Aires is the capital of Argentina and is one of the most popular destinations in South America for digital nomads and remote workers.

The city has a number of coworking spaces, as well as a thriving startup scene. Buenos Aires is also an affordable city to live in, which makes it a great option for those on a budget.

• Potential Market: Approximately 120,000 remote workers/month.
• Cost of Commercial Real Estate: Approximately $ 400,000 USD / 350 sq.m.
• Competition: Approximately 16 other coworking spaces throughout the city.
• Other Notable Information: Argentina now offers a 1-year remote workers visa, yet non-residents are still liable for a progressive income tax ranging from 5%-35%.
• Helpful resource: Best Real Estate Websites

 

3. Cape Town, South Africa

Cape Town is one of the most popular tourist destinations in Africa and is also home to a growing number of startups and tech companies.

The city has many coworking spaces catering to the needs of digital nomads and remote workers. Cape Town is also a great place to live and work, as it has a mild climate and is known for its beautiful beaches and scenery.

• Potential Market: Approximately 120,000 remote workers/month
• Cost of Commercial Real Estate: Approximately $ 400,000 USD / 350 sq.m.
• Competition: Approximately 16 other co-working spaces throughout the city.
• Other Notable Information: Argentina now offers a 1-year remote workers visa, yet non-residents are still liable for a progressive income tax ranging from 5%-35%.
• Helpful resource: Best Property Websites

 

4. Chiang Mai, Thailand

Chiang Mai, Thailand, is an increasingly popular destination for digital nomads and others who work remotely. The city offers a great quality of life at a fraction of the cost of places like Bangkok or Hong Kong.

In addition, it has a strong community of entrepreneurs, travel bloggers, and other creative professionals. As a result, it is an ideal place to set up a coworking space.

• Potential Market: Approximately 75,000 remote workers/month
• Cost of Commercial Real Estate: Approximately $ 250,000 USD / 350 sq.m.
• Competition: Approximately 18 other coworking spaces in the most popular area.
• Other Notable Information: Due to the Thai Land Code Act, foreigners are not permitted to own land in Thailand, and there are complications around the law whereby you can buy a property but not own the land. You can read more about the law here. Non-residents are also taxed 15% of gross income.
• Helpful resource: Real Estate Agencies in Chiang Mai

 

5. Barcelona, Spain

Barcelona is a popular tourist destination that is also home to a growing number of startups and tech companies. The city has many coworking spaces catering to the needs of digital nomads and remote workers.

Barcelona is also a great place to live and work, as it has a Mediterranean climate and is known for its vibrant nightlife and culture.

• Potential Market: Approximately 16,000 remote workers/month
• Cost of Commercial Real Estate: Approximately $ 850,000 USD / 350 sq.m.
• Competition: Approximately 20 other co-working spaces in the most popular area.
• Other Notable Information: There are no tax breaks for remote workers and anyone staying over 183 days in Spain is subject to local tax laws of 19% - 45%.
• Helpful resource: Real Estate Companies in Barcelona

 

6. Berlin, Germany

Berlin is another European city that has become increasingly popular with digital nomads and remote workers in recent years. The city has a large number of coworking spaces, as well as a thriving startup scene. Berlin is also an affordable city to live in, which makes it a great option for those on a budget.

• Potential Market: Approximately 82,500 remote workers/month
• Cost of Commercial Real Estate: Approximately $ 4,000,000 USD / 350 sq.m.
• Competition: Approximately 20 other co-working spaces in the most popular area.
• Other Notable Information: Germany does offer a digital nomad visa, in which owners are subject to taxes ranging from 14% - 42% depending on gross income.
• Helpful resource: Top Real Estate Sites In Berlin

 

7. Tbilisi, Georgia

Tbilisi, Georgia, has been growing in popularity as a favorable destination for remote workers. Not only Tbilisi but also the coastal area of Batumi. The cost of living is one of the most affordable on this list, the internet is fast, and there are a plethora of things to do within this beautiful and historic city.

• Potential Market: Approximately 20,000 remote workers/month.
• Cost of Commercial Real Estate: Approximately $ 500,000 USD / 350 sq.m.
• Competition: Approximately 18 other co-working spaces throughout the city.
• Other Notable Information: Georgia is considered a visa-free country as 95 countries can enter Georgia and stay 365 days with no visa. Due to an entrepreneurs scheme, digital nomads are only subject to a 1% tax for their first $155,000 of income.
• Helpful resource: Investing In Real Estate In Tbilisi

 

8. Lisbon, Portugal

Lisbon is the capital of Portugal and is one of the most popular destinations in Europe for digital nomads and remote workers. The city has a number of coworking spaces, as well as a thriving startup scene. It’s no wonder Portugal is a big favorite amongst remote workers.

• Potential Market: Approximately 4,000 remote workers/month.
• Cost of Commercial Real Estate: Approximately $ 1,000,000 USD / 350 sq.m.
• Competition: Approximately 20 other coworking spaces throughout the city.
• Other Notable Information: Portugal offers a Golden Visa, which allows for permanent residency for those who invest 300,000 Euros into the country for as long as this investment stays active. You can also apply for a temporary stay visa, which allows you to stay for 2 years as long as you can prove you make a minimum of 705 Euros/month. Most digital nomads opt for this over a 1-year digital nomad visa, which reports show can be somewhat more of a hassle to obtain.
• Helpful resource: Property Websites In Lisbon

 

9. Medellin, Colombia

Medellin, Colombia is an up-and-coming destination for coworking spaces. The city is filled with young entrepreneurs and digital nomads looking to make a name for themselves.

The cost of living is relatively low, and there are plenty of affordable office spaces.

In addition, Medellin has a vibrant nightlife and is home to some of the best salsa clubs in the world. If you're looking for a place to set up your coworking space, Medellin is definitely worth considering.

• Potential Market: Approximately 2,000 remote workers/month
• Cost of Commercial Real Estate: Approximately $ 450,000 USD / 350 sq.m.
• Competition: Approximately 20 other co-working spaces throughout the city.
• Other Notable Information: Digital nomads can enter Colombia for up to 2 years and are subject to personal income taxes if they exceed 183 days stay.
• Helpful resource: Real Estate Rankings In Colombia

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How to Choose the Right Destination for Your Needs

The first step in choosing the right destination for setting up a coworking space is to assess your needs.

Consider what type of business you hope to operate, what are your budget constraints, and how many people you need to accommodate.

Once you have a clear idea of your requirements, you can begin to narrow down your options.

There are a number of factors to consider when selecting a location for your coworking space, and asking the right questions will further guarantee your success.

• Is the location centrally located and easily accessible by public transportation?
• Is the space large enough to accommodate your needs, with plenty of natural light and a comfortable layout?
• Is the rent affordable and are the lease terms favorable?
• Is there are demand for coworking spaces in the area? How much competition is there, and how much space is available?
• What are the culture and climate like? Is the city safe and welcoming? What cultural attractions are nearby?

By taking all of these factors into account, you can choose the correct destination for setting up your coworking space.

 

Anticipated Potential Problems with Opening a Coworking Space

Not to put anyone off opening a coworking space, but it's better to prevent a fire than to try and put one out after it's started. When opening a coworking space, there are a number of potential problems to be aware of.

Perhaps the most significant issue is that of competitive pressure. In order to succeed, a coworking space must be able to attract and retain clients. This can be difficult in a market where there is already a high level of competition, and a lot of people simply prefer working from home.

Like with any business, an owner needs to be versed in a range of skills, from customer management to effective marketing that paints a picture of the business in a way that makes it stand out from others.

Additionally, customers are sometimes reluctant to sign long-term leases in a coworking space, as they may be concerned about the ability of the business to remain viable. As such, it is important to have a solid business plan and financial backing in place before launching a coworking space.

Another potential problem is noise pollution. If not managed properly, the noise levels in a coworking space can quickly become overwhelming, which can lead to decreased productivity and increased stress levels among employees.

Finally, it is also important to consider the potential for conflict between coworkers. If not managed properly, tensions can quickly emerge in a coworking environment, which can create an unpleasant working environment.

 

To Wrap up

If you're looking for a new place to set up your coworking space, consider one of these destinations. Each location offers its own unique benefits that are sure to appeal to entrepreneurs and small business owners. Good luck!

The article was written by Chris Hardy. Chris is a full-time content marketer running several niche blogs and a growing YouTube channel. A teacher at heart, Chris spent 10+ years as a professional dance and English teacher before diving into the world of online business where he made a name for himself on YouTube exposing "make money" scams. To learn more, visit: https://selfmadenewbie.com.