Coworking office space leasing in India dropped 43% in Q1 2025, while overall office leasing rose 5%, driven by growing demand from Global Capability Centers (GCCs). According to CBRE, GCCs are emerging as key occupiers, shifting market focus from flexible workspaces to long-term, strategic corporate setups.
India’s coworking office space segment has slowed, with leasing activity plunging by 43% in the January–March 2025 quarter compared to the same period last year, according to real estate consultancy CBRE. The total office space taken up by coworking operators across nine major Indian cities fell to 21.6 lakh square feet, down from 37.6 lakh square feet a year earlier.
CBRE data also revealed a sharp drop in coworking’s share of the overall leasing market—from 22% in Q1 2024 to just 12% this year. This downturn contrasts with the broader office leasing market, which recorded a 5% year-on-year growth, touching 180 lakh square feet in the first quarter of 2025.
Despite the recent boom in demand for flexible and managed workspaces post-pandemic, coworking operators, like WeWork India, Smartworks, Awfis, Incuspaze, Simpliwork Offices, and IndiQube are now facing mounting pressure. These firms typically lease large office areas from property owners and sublet them to corporates, startups, and remote teams. The current slump suggests that occupier priorities may be shifting once again.
CBRE’s Managing Director for Advisory & Transaction Services, Ram Chandnani, pointed to a different growth story in India’s commercial real estate. “India is rapidly evolving as a global hub for GCCs, with multinational firms leveraging its skilled workforce to drive innovation and digital transformation,” he said.
Global Capability Centers (GCCs)—offshore units established by multinational firms for functions like IT, finance, and operations—are gaining traction as major occupiers of Indian office space. CBRE expects GCCs to account for 35–40% of total office absorption in 2025, driven by metro expansion and movement into emerging business hubs, backed by supportive state-level policies.
Chandnani noted, “While US firms remain dominant, European and Asian corporations are increasingly establishing GCCs in India, drawn by its cost-efficiency and mature operational ecosystem.” Sectors like technology and BFSI (Banking, Financial Services, and Insurance) are set to fuel this surge in demand, underlining a shift in leasing dynamics.
The data covered key metros, including Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, and Kochi. While coworking operators retreat, the rising tide of GCCs signals a longer-term structural change in India’s office space market—one that reflects evolving corporate strategies and the maturing of India’s commercial real estate landscape.
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