As demand for flexible office space soars, Pune has emerged as a key player in India’s coworking landscape, recently ranking as the country’s second-largest city for office space collaborations. According to a recent report by Knight Frank, Pune recorded 123 office space collaboration transactions from 2018 to September 2023, reflecting the city’s growing appeal among businesses and startups seeking modern, flexible workplaces. “Pune has become a standout market in the coworking space sector,” said a spokesperson from Knight Frank, as companies increasingly prefer shared spaces over traditional office settings.

This trend is a significant shift across India’s major cities, including Mumbai, Delhi, and Bangalore, as more companies seek cost-effective, adaptable office solutions. Knight Frank’s study examined eight major metropolitan areas, revealing 912 office space collaborations across India, with Bangalore leading at 257 transactions or 28% of the total. Pune’s 123 transactions, though fewer than Bangalore’s, still solidify its position as a significant coworking hub.

Pune also showed substantial numbers in extensive office collaborations. The report noted that out of 153 significant deals (for spaces over 80,000 square feet), 30 took place in Pune, while Bangalore led with 47. In the medium-sized category (40,000 to 80,000 square feet), Pune accounted for 33 out of 208 deals, compared to Bangalore’s 60. Even in smaller office transactions (under 40,000 square feet), Pune secured 60 of the 551 deals recorded, underscoring its relevance in the coworking scene.

This growth reflects broader trends in how companies adapt to the evolving work environment. Businesses are drawn to the coworking model for its affordability, adaptability, and collaborative atmosphere, which can enhance productivity and innovation. In Pune, companies capitalise on these benefits by sharing office spaces rather than creating exclusive corporate facilities. As coworking continues gaining traction, major Pune firms now provide solutions tailored to various client needs, meeting demand from startups to large enterprises.

Pune’s expanding coworking sector redefines the city’s commercial real estate dynamics. As the shift towards flexible workspaces continues, Pune’s position as a coworking hotspot will likely strengthen, supported by the city’s strategic location, growing startup ecosystem, and access to skilled talent.