India Co-working Office Space Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Co-working Office Space Market Size & Companies in India and it is segmented by type (flexible managed office, serviced office), by application (information technology (IT and ITes), legal services, BFSI (banking, financial services, and insurance), consulting and other services, by end user (personal user, small scale company, large scale company, others), by key cities (Delhi, Mumbai, Bangalore, and other cities). The market size and forecasts for India co-working office spaces market are provided in terms of value (USD billion) for all above segments.

India Co-working Office Space Market Size

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India Co-working Office Spaces Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.94 Billion
Market Size (2029) USD 2.72 Billion
CAGR (2024 - 2029) 7.00 %
Market Concentration Low

Major Players

India Co-working Office Spaces Market Major Players

*Disclaimer: Major Players sorted in no particular order

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India Co-working Office Space 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 COVID-19 pandemic accelerated the growth of coworking spaces in the country, as traditional workspaces faced challenges during the crisis. Many enterprises moved towards coworking spaces because of affordable prices and flexibility in working areas. Also, coworking holes 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 sector provides top facilities at affordable prices. Large-scale enterprises are also adopting coworking spaces after realizing the benefits offered by the sector. Also, the increasing number of startups with high investment flow rates has resulted in robust sector growth.
  • The first half of 2022 has seen a rebound in the coworking space industry, driven by the increased demand for flexible office space. As per statistics, demand for coworking spaces increased by a staggering 643% in H1 2022 compared to the same time five years ago.
  • As a result, the share of coworking spaces in the top seven markets in the nation's office absorption increased to 20% from 6% in H1, 2021. Following the pandemic, the demand for flexible office spaces has increased significantly, with big corporations and businesses, including startups, now favoring coworking.
  • Bengaluru accounted for the highest share of leasing by Flexi operators, followed by Mumbai and Delhi-NCR. Startups first led the demand for Coworking office spaces in Indis before MNCs and large enterprises took the plunge by taking up space in Coworking Office Spaces.

India Co-working Office Space Market Trends

Cost Optimization is Driving the Significant Growth in the Sector

In India, Coworking spaces are preferred mainly by startups for cost-effectiveness. Users only pay for what they use and rent, nothing extra; there are no hassles and spending on infrastructure maintenance and repair, which conventional offices include. Since startups function on limited capital initially, lower costs of performing work are in their favor. Companies not bound by long-term lease contracts with strict terms in a regularly changing economic environment will be better positioned. The Coworking Spaces offers flexible tariffs that can combine service packages, such as choosing precisely what suits users' needs. In case users need to reduce or, on the contrary, increase the project team, for example, if companies enter a period of rapid growth and need more employees, using Coworking spaces can always do it.

So, the companies' bottom lines are a crucial factor driving demand for coworking space. Based on locations nationwide, coworking offers a 12-72 percent cost reduction compared to traditional office space. The cost of traditional office space quickly adds up. In addition to lease payments, prices for conventional office space include utilities, internet, and tech support and maintenance. Conversely, utilities, internet, tech support, and maintenance are typically included in coworking memberships. Businesses of all sizes have caught on to the cost savings of shared workspace.

India Co-working Office Spaces Market: Average rent of key IT markets in India in 2022, by city, in Indian rupees per square foot per month

Increasing Number of Startups and Freelancers in the Country

The Coworking ecosystem, initially the go-to option for startups and freelancers, has become a prerequisite for SMEs. The biggest chunk of 10.3 million seats out of the total 12-16 million potential seats is ascribed to large companies. There is a qual divide of 1.5 million each among freelancers and SMEs.

In February 2023, the Government said the number of recognized startups had increased from 445 in 2016 to 86,713 in 2022. Under the Startup India initiative, as of June 2022, 72,993 have been recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). Under SISFS, as of June 2022, 703 startups have been provided with funds, while 428 startups have been approved for funding. According to the statement, the Government has established FFS with a corpus of INR 10,000 crore (USD 12 Billion)to meet startups' funding needs.

The smallest lot is formed by startups, at 100,000 seats. With a substantial shift from traditional offices to flexible workspaces attaining widespread acceptance, more and more SMEs are embracing coworking due to cost efficiency, flexibility, tech integrations, superior infrastructure, enhanced productivity, plug-and-play solutions, and networking opportunities. Thus, they can concentrate on their fundamental business minus the hassle of managing real estate.

India Co-working Office Spaces Market: Number of Government Recognized Startups, in Thousand Units, India, 2016-2022, in Percentage

India Co-working Office Space Industry Overview

India's Coworking Office Spaces Market is fragmented, with global and local coworking market players. Some of the key players in the market include 91 Springboard, Awfis, WeWork, and Mumbai Coworking, among others. Also, many more are entering the need to fulfill the rapid demand for casual environment offices. The companies in India's Coworking Office Space Market are involved in several growth and expansion strategies, such as strategic partnerships, mergers, and acquisitions, to gain a competitive advantage.

India Co-working Office Space Market Leaders

  1. 91 Springboard

  2. Wework

  3. The Hive

  4. Awfis

  5. Mumbai Coworking

*Disclaimer: Major Players sorted in no particular order

India Co-working Office Spaces Market Concentration
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India Co-working Office Space Market News

  • February 2023: Coworking major WeWork India has started a new center in Pune with 1,500 desks and a 96,000-square-foot area amid rising demand for flexible office space from corporations. The new facility is located at Raheja Woods IT Tower, developed by K Raheja Corp. This is an asset-light deal, and the company has leased the entire building comprising five floors in this Kalyani Nagar property, spread across a deskspace of 1,500. This is the company's third facility in Pune. WeWork India has a portfolio of over 6.5 million square feet across 44 locations in Delhi-NCR, Mumbai, Bengaluru, Pune, and Hyderabad.
  • April 2023: Coworking marketplace Stylework raises USD 2 million at a USD 20 million valued deal. Stylework's impressive growth and innovative approach have caught the attention of the industry, leading to a successful recent Series A1 funding of USD 2 million at a USD 20 million valued deal from institutional investors, including Capriglobal Holdings, QI Ventures & some undisclosed family offices.
  • October 2022: Enterprise focussed workspace platform Smartworks announced its entry into Tier-2 cities, with centres in Jaipur and Indore spread across approximately 1.7 lakh sq. ft as part of its expansion plan. The company plans to add another three million sq ft in Tier 1 and Tier 2 cities including Delhi NCR, Bengaluru, Pune, Chennai, Mumbai, Hyderabad, Kochi, Ahmedabad and Coimbatore in this fiscal, bringing its total portfolio to 10 mn sq.ft.

India Co-working Office Space Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Market Drivers

        1. 4.2.1.1 Increase in number of Startups

        2. 4.2.1.2 The development of sustainable coworking spaces

      2. 4.2.2 Market Restraints

        1. 4.2.2.1 A Rise in Remote Work

      3. 4.2.3 Market Opportunities

        1. 4.2.3.1 Enhanced technology integration

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers/Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Government Regulations and Initiatives

    5. 4.5 Industry Value Chain Analysis

    6. 4.6 Technology Trends in the Market

    7. 4.7 Insights on Co-working Startups in India

    8. 4.8 Impact of COVID - 19 On the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Flexible Managed Office

      2. 5.1.2 Serviced Office

    2. 5.2 ByApplication

      1. 5.2.1 Information Technology (IT and ITES)

      2. 5.2.2 Legal Services

      3. 5.2.3 BFSI (Banking, Financial Services, and Insurance)

      4. 5.2.4 Consulting

      5. 5.2.5 Other Services

    3. 5.3 By End User

      1. 5.3.1 Personal User

      2. 5.3.2 Small Scale Company

      3. 5.3.3 Large Scale Company

      4. 5.3.4 Other End Users

    4. 5.4 By Key Cities

      1. 5.4.1 Delhi

      2. 5.4.2 Mumbai

      3. 5.4.3 Banglore

      4. 5.4.4 Other Cities

  6. 6. Competitive Land Scape

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Mumbai Coworking

      2. 6.2.2 We Work-BKC

      3. 6.2.3 Innov8-Vikhroli

      4. 6.2.4 91 springboard

      5. 6.2.5 Spring House Coworking

      6. 6.2.6 Indi Qube

      7. 6.2.7 Skootr

      8. 6.2.8 Awfis CBD

      9. 6.2.9 Smartworks

      10. 6.2.10 Goodworks

      11. 6.2.11 Cowrks

      12. 6.2.12 Hive*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

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India Co-working Office Space 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 India Co-working Office Spaces 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 COVID-19 impact is included in the report.

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

By Type
Flexible Managed Office
Serviced Office
ByApplication
Information Technology (IT and ITES)
Legal Services
BFSI (Banking, Financial Services, and Insurance)
Consulting
Other Services
By End User
Personal User
Small Scale Company
Large Scale Company
Other End Users
By Key Cities
Delhi
Mumbai
Banglore
Other Cities
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India Co-working Office Space Market Research FAQs

The India Co-working Office Spaces Market size is expected to reach USD 1.94 billion in 2024 and grow at a CAGR of 7% to reach USD 2.72 billion by 2029.

In 2024, the India Co-working Office Spaces Market size is expected to reach USD 1.94 billion.

91 Springboard, Wework, The Hive, Awfis and Mumbai Coworking are the major companies operating in the India Co-working Office Spaces Market.

In 2023, the India Co-working Office Spaces Market size was estimated at USD 1.81 billion. The report covers the India Co-working Office Spaces Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Co-working Office Spaces Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

India Co-working Office Space Industry Report

Statistics for the 2023 India Co-working Office Space market share, size and revenue growth rate, created by Mordor Intelligenceā„¢ Industry Reports. India Co-working Office Space analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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India Co-working Office Space Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)