India Co-working Office Spaces Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

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 Co-working Office Spaces Market in value (USD Billion) for all above segments.

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India Co-working Office Spaces Market Size

India Co-working Office Spaces Market Summary
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Study Period 2019 - 2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR > 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 Spaces Market Analysis

The size of India Co-working Office Spaces market is USD 1.78 billion in the current year and is anticipated to register a CAGR of over 7% during the forecast period

  • 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 rates of investment flows resulted in robust growth of the Sector.
  • 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. Start-ups 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 Spaces Market Trends

This section covers the major market trends shaping the India Co-working Office Spaces Market according to our research experts:

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 in a better position. The Coworking Spaces offers flexible tariffs with the ability to combine service packages like choosing exactly 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. And the bottom line is that coworking offers a 12-72 percent cost reduction compared to traditional office space, based on locations around the country. 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 Monthly Price Per Desk in Major Cities

Increasing Number of Startups and Freelancers in the Country

The Coworking ecosystem, initially the go-to option for startups and freelancers, has now 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.

Small and Medium Enterprises have been growing rapidly with over 63 million SMEs in the country currently rising at an average rate of 10%. SMEs contribute to 45% of India's manufacturing output and add to more than 28% of India's GDP. The current MSME employee base of 128 million was expected to grow to 170 million by 2022. With renewed economic reforms by the government comprising of streamlining of labor laws. Ensuring digital integrations & creating SME/MSME-friendly policies, the SME segment can no longer be overlooked by the business ecosystem in India.

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, allowing them to concentrate on their fundamental business minus the hassle of managing real estate.

India Co-working Office Spaces Market - Number of Government Recognized Startups

India Co-working Office Spaces Industry Overview

India's Co-working Office Spaces Market is fragmented, with global and local players in the coworking spaces market. Some of the key players in the market include 91 Springboard, Awfis, WeWork, and Mumbai Co-working, among others. Also, many more are entering the need to fulfill the rapid demand for casual environment offices. The companies in India's Co-working 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 Spaces 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

India Co-working Office Spaces Market News

  • February 2023: Coworking major WeWork India has started a new centre in Pune with 1,500 desks and 96,000 square feet area amid rising demand for flexible office space from corporates. 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 area across 44 locations in Delhi-NCR, Mumbai, Bengaluru, Pune and Hyderabad.
  • May 2022: WeWork India, India’s leading flexible workspace provider, signed its largest expansion deal to date with renowned real estate developer Bhutani Group. This is a long-term operator deal wherein WeWork is taking up the entire tower comprising 25 leasable floors at Bhutani Alphathum, in Noida. Under this partnership and deal structure, the entire building P&L will be owned by Bhutani Group along with fitout investments.

India Co-working Office Spaces 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

      2. 4.2.2 Market Restraints

      3. 4.2.3 Market Opportunities

    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 Others

    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

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 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 Co-working Office Spaces Market in value (USD Billion) for all 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
Others
By Key Cities
Delhi
Mumbai
Banglore
Other Cities

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India Co-working Office Spaces Market Research FAQs

The India Co-working Office Spaces Market is projected to register a CAGR of greater than 7% during the forecast period (2023-2028).

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

India Co-working Office Spaces Industry Report

Statistics for the 2023 India Co-working Office Spaces market market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Co-working Office Spaces market analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

India Co-working Office Spaces Report Snapshots

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