India Co-working Office Spaces Market Size (2024 - 2029)

India Co-working Office Spaces Market Analysis

The India Co-working Office Spaces Market size is estimated at USD 1.94 billion in 2024, and is expected to reach USD 2.72 billion by 2029, growing at a CAGR of 7% during the forecast period (2024-2029).

• The pandemic accelerated the growth of co-working spaces in the country, as traditional workspaces faced challenges during the crisis. Many enterprises moved toward co-working spaces because of affordable prices and flexibility in working areas. Also, co-working spaces ensure to provide a safe working environment.
• The sector is driven by increasing demand from freelancers, small and medium-scale enterprises (SMEs), and startups. Because the industry provides top facilities at affordable prices, large-scale enterprises are also adopting co-working spaces after realizing the benefits offered by the industry. Also, the increasing number of startups with high investment flow rates has resulted in robust sector growth.
• The previous year has seen a rebound in the co-working space industry, driven by the increased demand for flexible office space. Co-working spaces have grown in popularity among businesses in India, with demand doubling over the past four years. In the first quarter of 2023, co-working spaces accounted for 27% of the net absorption of 8.2 million sq. ft. across the top seven cities, marking a substantial rise from 14% in Q1 2019.
• Bengaluru and the National Capital Region (NCR) together comprised two-thirds of the net absorption of co-working spaces during Q1 2023. Pune and Chennai collectively absorbed about 0.52 million sq. ft. of co-working spaces in the same period. The top seven cities experienced a remarkable 90% growth in net absorption of co-working spaces, escalating from 1.3 million sq. ft. in Q1 2019 to approximately 2.18 million sq. ft. in Q1 2023.
• Bengaluru accounted for the highest share of leasing by Flexi operators, followed by Mumbai and Delhi-NCR. Startups first led the demand for co-working office spaces in India before MNCs and large enterprises took the plunge by taking up space in co-working office spaces.

India Co-working Office Spaces Industry Segmentation

Co-working is an arrangement where workers of different companies share an office space, allowing cost savings and convenience using common infrastructures. A complete background analysis of the Indian co-working office space market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and the impact of the COVID-19 pandemic is included in the report.

The Indian co-working office space market is segmented by type (flexible managed office and serviced office), application (information technology (IT and ITES), legal services, BFSI (banking, financial services, and insurance), consulting, and other services), end user (personal user, small scale company, large scale company, and others), and key cities (Delhi, Mumbai, Bangalore, and Other Cities). The report offers market size and forecasts for the Indian co-working office space market in value (USD) for all the above segments.