India Co-working Office Spaces Market Size

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.