Coworking Space Leasing Surged 44% In India In 2024

Coworking operators in India have leased a record 125 lakh square feet (approximately 12.5 million square feet) of premium office space in 2024, marking a 44% year-on-year increase as the demand for flexible workspaces continues to rise, according to The Economic Times. 

According to a recent report from Colliers, coworking companies had leased 87 lakh (8.7 million square feet) in 2023, showcasing the massive growth of the sector.

The surge in demand is driven by businesses increasingly prioritizing agility, cost efficiency, and employee-centric solutions. With companies embracing hybrid work models and flexible office environments, coworking spaces are capitalizing on this shift, offering businesses the ability to scale up or down based on their needs.

India’s top cities, including Bengaluru, Gurugram, Hyderabad, and Mumbai, are expected to continue driving the bulk of this growth, with demand for coworking and managed office spaces anticipated to surge further in 2025. 

According to Shesh Rao Paplikar, Founder and CEO of BHIVE Workspaces, businesses are seeking more agile, cost-effective solutions to accommodate changing workforce needs. 

The swift rise in coworking space demand is also reflected in the broader market statistics. By the end of the first half of 2024, the total flex office stock in India had already reached close to 70 million square feet (approximately 7 million square meters), and it is expected to cross 100 million square feet (about 9.3 million square meters) in the coming years, according to Nikhil Madan, Co-founder of The Office Pass. 

Institutional investors remain optimistic about the long-term potential of the coworking space market. The rising demand is encouraging them to actively invest in this sector, which is expected to continue growing as companies seek more flexible, adaptable workspace options. 

As demand for flexibility and cost-effective office solutions continues to be on the uptick, coworking operators are expanding their portfolios, with a growing share of office space leasing going to flexible workspace providers.

Colliers India forecasts that the trend of increased demand for flexible workspaces will continue in 2025 and beyond, as more businesses prioritize flexibility and innovation in how they manage their office space needs.