India’s coworking and flexible office space sector is preparing for a significant leap forward, with up to five companies eyeing initial public offerings (IPOS) worth over Rs 7,000 crore in the next 12 to 18 months. The surge in market activity, highlighted in a recent ICRA report, reflects the sector’s rapid expansion and growing investor confidence.

“The segment, which has seen one successful initial public offer (IPO) in 2024, is set to witness five major IPOS,” ICRA noted, underlining the momentum building in the industry. Among the frontrunners are Awfis, which has already gone public, alongside Smartworks, WeWork India, and IndiQube Spaces Ltd, all of which have filed draft papers with the Securities and Exchange Board of India (SEBI).

The flexible office space footprint in India’s top six cities—Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR), and Pune—is expected to grow from around 80 million square feet in December 2024 to 125 million square feet by March 2027. This nearly 56% increase signals a fundamental shift in modern businesses’ views of workspace strategy.

Driving this change is the growing preference for agility and efficiency among corporations. “The demand for coworking spaces has increased at a brisk pace—driven by flexibility, short-lease tenures and lower upfront cost in terms of capex for tenants,” said Anupama Reddy, Vice President and Co-Group Head at ICRA.

With over 2,000 centres operated by over 450 players across India, the sector has diversified well beyond startups. IT and ITeS companies remain dominant users, but demand from engineering, manufacturing, and emerging global capability centres (GCCS) is also rising fast.

“The rise of nano and micro GCCS is a big part of what’s driving this sharp increase in office space demand,” said Abhijith Shashidhar, CEO and Co-founder of Clayworks Spaces. He emphasised the changing nature of work—more flexible, agile, and outcome-focused—which is reshaping real estate needs.

Industry leaders also highlight the importance of sustainability and differentiated value in the coming growth phase. “It is inspiring to see such dynamic growth and innovation. However, while the market is brimming with players, we believe there is still a gap regarding the depth of quality and long-term sustainability,” noted Vibhor Jain, Founder and CEO of Carbon Guardians.

According to Peush Jain, Managing Director – Commercial Leasing and Advisory at Anarock Group, the expansion in supply aligns with a broader shift toward hybrid work strategies. “Corporations are adopting hybrid working to optimise costs and enhance workforce efficiency, while expanding their presence across markets,” he said.

As the coworking sector scales new heights, the next chapter will likely be defined by size, experience, operational resilience, and strategic innovation. With strong IPO interest and growing corporate demand, India’s flex space story is just beginning.