Coworking firms in India have been forced to hike up their rent as both demand and the price of materials grow.

Many of these flex spaces are seeing over 90% occupancy, leading operators to raise rentals across the limited number of Class A offices in the country.

“With a surge in demand and limited amount of grade A office space available in metros, quality workspaces are commanding a higher premium,” said Nidhi Marwah, Group Managing Director at The Executive Centre.

“We have mirrored the increase in rentals and fixed expenses ranging from 1-5% in our costs. However, other factors or deal terms drive final costs.”

Another factor driving the cost of coworking is the pure demand for flexibility and employee wellbeing, which do not come free.

“The cost of everything has gone up in the past few months and in line with the market prices, we have increased the rentals by up to 15%,” said Akshita Gupta, cofounder and CEO of ABL Workspaces.

The correlation between pricing and current market conditions is certainly another factor as record-high inflation causes the cost of nearly everything to rise.