The coworking industry in India achieved a significant milestone in 2024, with operators leasing a record-breaking 125 lakh square feet of premium office space. This marks a 44% year-on-year increase as demand for flexible and managed workspaces continues to grow, according to Colliers India. The leased space outpaces the 87 lakh square feet secured in 2023, underscoring the sector’s robust growth trajectory.

“Flex space leasing touched an all-time high at 12.5 million square feet, driving 19% of the overall space uptake,” Colliers India noted in its report. Overall gross office space leasing across six major cities also hit a record 66.4 million square feet, a 14% jump from 2023. This growth will persist into 2025 as businesses increasingly embrace agility and cost-efficiency.

Shesh Rao Paplikar, Founder and CEO of BHIVE Workspaces, expressed optimism about the sector’s future. “The demand for coworking and managed office spaces is set to surge in 2025 as businesses continue prioritising agility, cost-efficiency, and employee-centric workplace solutions,” he said.

The rise in demand stems from shifting workforce dynamics and significant cost advantages. Nikhil Madan, Co-founder of The Office Pass, highlighted that flex office stock had already reached nearly 70 million square feet by mid-2024 and is poised to surpass 100 million square feet within a few years. “Flex space providers are capitalising on this demand, offering solutions that cater to evolving workforce needs,” Madan noted.

Key markets such as Bengaluru, Gurugram, Hyderabad, and Mumbai are expected to lead this growth, fueled by institutional investor interest. “Investors remain optimistic about the segment’s potential, a trend likely to continue into 2025,” said Amal Mishra, Founder and CEO of Urban Vault.

The industry is also undergoing a technological evolution. Peush Jain, MD of Commercial Leasing at Anarock, emphasised the strategic value of flexible workspaces. “Occupiers no longer view flex spaces as temporary solutions but as strategic assets aligned with hybrid work models. Advanced booking systems, AI-driven analytics, and smart building solutions have further enhanced their appeal,” he explained.

Parul Thakur, Senior Vice President at Cowrks, pointed to the sector’s adaptability. “Providers are offering agile and customisable solutions while investing in hybrid-ready designs that enable businesses to enhance operational efficiency and adapt to market changes,” she said.

Coworking spaces have cemented their place as a cornerstone of India’s commercial real estate market. As Manas Mehrotra, Founder of 315Work Avenue, put it, “Coworking spaces have emerged as the defining feature of India’s evolving work culture, reflecting broader shifts toward flexibility, collaboration, and sustainability.”

According to Vestian, flexible office operators currently manage a 67 million square feet portfolio, projected to exceed 100 million square feet by 2026. With large corporations and startups alike embracing the model, the coworking industry is well-positioned for sustained growth and innovation, shaping the future of work in India.