Latin America Co-Working Spaces Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Latin America Co-Working Space Companies and the market is segmented by End Users (Independent Professionals like freelancers, Startup Teams, Small to Medium Sized Enterprises (SMEs) and Large Scale Corporations), by Business Type (New Spaces, Expansions and Chains) and by Business Model (Sub-lease Model, Revenue Sharing Model and Owner-Operator Model).

Latin America Co-Working Spaces Market Size

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Latin America Coworking Spaces Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.66 Billion
Market Size (2029) USD 1.91 Billion
CAGR (2024 - 2029) > 10.64 %
Market Concentration Low

Major Players

Latin America Coworking Spaces Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Latin America Co-Working Spaces Market Analysis

The Latin America Coworking Spaces Market size is estimated at USD 1.66 billion in 2024, and is expected to reach USD 1.91 billion by 2029, growing at a CAGR of greater than 10.64% during the forecast period (2024-2029).

  • Latin America has witnessed a surge in entrepreneurial and startup activity, with many new businesses and ventures launched across various industries. Coworking spaces provide flexible and cost-effective solutions for these startups, offering them a professional workspace without the burden of traditional office lease commitments. A source claims that between 2019 and 2022, there will be a roughly 30% growth in the number of businesses providing coworking services in Mexico. With 86% of coworking offices being class A+ and A up until the first quarter of 2023, this business model prioritizes high-quality facilities.
  • Latin American nations have made investments throughout the years to upgrade infrastructure, including telecommunications and technology. Because of this, it is now simpler for coworking spaces to offer dependable internet access, which is essential for businesspeople using these spaces. The gig economy is flourishing in Latin America, with a growing number of freelancers, independent contractors, and self-employed professionals. Coworking spaces cater to this demographic, offering a shared environment that fosters networking and collaboration. The millennial generation and the growing startup culture create the need for low-cost, flexible coworking spaces worldwide.

Latin America Co-Working Spaces Market Trends

Growth of Coworking Spaces Market in Mexico

The market has been better positioned in recent quarters. However, with the new work modes, some businesses are attempting to reintroduce their workers in a more beneficial and practical manner. Thus, flexible workspaces are a corporate workplace approach. Coworking spaces first appeared in Mexico in 2009. They were popular among SMEs, freelancers, and entrepreneurs who needed a more beneficial and practically corporate appearance. Mexico's urban centers, such as Mexico City, Monterrey, and Guadalajara, remained major economic hubs with a high demand for office spaces. These cities continued to attract businesses and startups seeking access to a skilled workforce and various industries.

Certain areas within major cities, such as Mexico City's "Corredor Tecnológico" (Technology Corridor), have emerged as tech and innovation hubs, leading to increased demand for office spaces in those regions. The total inventory of Class A offices in Mexico City surpassed 7.5 million square meters in finished buildings at the end of 2022. The inventory has increased again and ended the first half of the year with 7.8 million square meters. Over the following two years, a massive pipeline of 483,288 square meters is anticipated to be delivered. Nowadays, there are over 100 business center spaces in the Mexico City metropolitan area, mainly in the Polanco, Reforma, and Insurgentes submarkets. Further, new companies are offering this service.

This will result in an approximately 6% increase in current stock. However, these structures are progressing slower than in previous years when the market was more active. The vacancy rate of office space is likely to fall compared to the last two years when the market experienced an unexpected return of space due to the introduction of hybrid work models and the home office. Market activity is likely to go up.

Latin America Coworking Spaces Market: Office Real Estate Inventory, by Submarket, in 1,000 square meters, Mexico City, 1st quarter of 2023

Growing Startups in Latin America boosting the market

Many countries in Latin America have achieved greater economic and political stability in recent years. This has encouraged local and foreign investors to explore opportunities in the region, leading to increased funding and support for startups. The startup culture in Latin America has evolved, with more young entrepreneurs and professionals opting to start their businesses rather than pursuing traditional career paths. This cultural shift has contributed to the growth of startup activity in the region. Several Latin American governments have recognized the potential of startups as engines of economic growth and have introduced initiatives and programs to support entrepreneurship. These include tax incentives, grants, and startup incubators.

Startups in Latin America have been gaining momentum in recent years, with several countries in the region fostering their growth through supportive public policies and investment. Chile, Colombia, Mexico, and Peru are examples of Latin American nations that have put policies in place to encourage the development and growth of startups. These rules combine support services and new technologies like co-working spaces and crowdfunding with finance plans. Brazil, in particular, has drawn significant venture capital investment. Brazil had 375 venture capital investment rounds for USD 3.1 billion in the first half of 2022. Significant investments have also been made in Chile and other nations, with businesses like Xepelin receiving a USD 111 million Series B fundraising round.

Latin America Coworking Spaces Market: Leading countries for startups in Latin America and the Caribbean, by total score, 2023

Latin America Co-Working Spaces Industry Overview

The industry is quite fragmented, with many players existing in the coworking spaces market; also, many more are entering the market to fulfill the rapid demand for casual environment offices. As with the U.S., WeWork and IWG (Regus) are the dominant players in the sector, accounting for 54% and 17% of flexible workspace across the nine markets, respectively.

Local players like Hot Cowork, Ios, and Iza are also in the game. Some other major players in the market include - Impact Hub, Alley, Knotel, Make Office, Industrious Office, Techspace, Serendipity Labs, and Green Desk.

Latin America Co-Working Spaces Market Leaders

  1. Impact Hub

  2. Knotel

  3. Techspace

  4. WeWork

  5. IWG/Regus

*Disclaimer: Major Players sorted in no particular order

Latin America Coworking Spaces Market Concentration
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Latin America Co-Working Spaces Market News

July 2023: With operations starting on September 1, 2023, ClassNK has established a new exclusive survey office in Paranagua, Brazil. One of the top port cities in Brazil is Paranagua, which has lately increased the size of its port infrastructure. Aiming to provide a more efficient service, ClassNK has opened its newest office in response to the growing number of surveys and audits in the port and the surrounding area.

February 2023: The launch of a new regional office in Brazil was announced by ICM. The new office, situated in the center of So Paulo's business center, will act as a focal point for the business operations in the area and improve access to and support for the company's clients.

Latin America Co-Working Spaces Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 The pandemic accelerated the adoption of flexible workspaces, including coworking spaces and serviced offices

      2. 4.2.2 Landlords and property owners have been offering more flexible lease terms to attract tenants

    3. 4.3 Market Restraints

      1. 4.3.1 Economic and political fluctuations in some Latin American countries can create uncertainty for businesses

      2. 4.3.2 Bureaucracy and Red Tape

    4. 4.4 Market Opportunities

      1. 4.4.1 Large corporations are increasingly looking to optimize their office spaces and find more flexible leasing options

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power of Suppliers

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

  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 By Business Model

      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 and 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

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Impact Hub

      2. 6.2.2 WeWork

      3. 6.2.3 IWG/Regus

      4. 6.2.4 Knotel

      5. 6.2.5 Alley

      6. 6.2.6 Selina

      7. 6.2.7 Industrious Office

      8. 6.2.8 Techspace

      9. 6.2.9 Serendipity Labs

      10. 6.2.10 Green Desk*

    3. *List Not Exhaustive
  7. 7. FUTURE OF COWORKING SPACES IN LATIN AMERICA

  8. 8. APPENDIX

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Latin America Co-Working Spaces Industry Segmentation

Coworking is an arrangement where workers of different companies share an office space, allowing cost savings and convenience using common infrastructures.

The coworking spaces market in Latin America 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), and by end-user (personal user, small scale company, large scale company, others). 

The report offers market size and forecast values (USD) for all the above segments, and the COVID-19 impact is comprehensively covered.

By Type
Flexible Managed office
Serviced Office
By Business Model
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
Other End-users
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Latin America Co-Working Spaces Market Research FAQs

The Latin America Coworking Spaces Market size is expected to reach USD 1.66 billion in 2024 and grow at a CAGR of greater than 10.64% to reach USD 1.91 billion by 2029.

In 2024, the Latin America Coworking Spaces Market size is expected to reach USD 1.66 billion.

Impact Hub, Knotel, Techspace, WeWork and IWG/Regus are the major companies operating in the Latin America Coworking Spaces Market.

In 2023, the Latin America Coworking Spaces Market size was estimated at USD 1.5 billion. The report covers the Latin America Coworking Spaces Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Coworking Spaces Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Latin America Coworking Spaces Industry Report

Statistics for the 2023 Latin America Coworking Spaces market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Coworking Spaces 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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Latin America Co-Working Spaces Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)