Co-working operators accounted for 26% of India’s office demand between January and September 2026, narrowly surpassing IT/ITeS companies at 25%, according to Anarock Research & Advisory. The shift marks the first time flexible workspace providers have led occupier demand for 9 consecutive months, highlighting changing workplace preferences among enterprises.
India’s flexible workspace sector has reached a notable milestone, with co-working operators emerging as the largest occupier category in the office market for the first nine months of 2026. According to findings from Anarock Research & Advisory released on October 14, co-working accounted for 26% of office demand between January and September, compared with 25% for information technology and IT-enabled services (IT/ITeS).
The one-percentage-point difference puts the two categories close together. Still, the result marks a shift in a market where IT and IT-enabled services have traditionally been major sources of office demand. Co-working’s lead suggests that flexible workspace providers are becoming increasingly important in how businesses secure and use commercial office space.
Enterprises Look Beyond Traditional Office Leases
The changing demand mix points to growing interest in flexible office arrangements among enterprises. Instead of leasing and managing an entire office independently, companies can use co-working spaces or managed workspace solutions to accommodate teams and business requirements.
These arrangements can offer options for companies that need to establish teams, expand operations or adjust their office footprint without committing to a conventional long-term lease for every requirement. The growing share of co-working in overall office demand suggests that flexibility is becoming a more important consideration in workplace decisions.
However, the reported figures do not identify the companies behind the demand or explain which specific factors led them to choose flexible workspaces. They also do not provide a city-level breakdown, making it difficult to determine where co-working’s share is strongest.
A Changing Picture for India’s Office Market
Co-working’s position at the top of the nine-month comparison puts flexible workspace operators alongside traditional corporate occupiers as a major force in commercial real estate. Their activity can influence demand for office buildings, particularly properties that can support managed offices, shared workspaces and larger enterprise requirements.
For landlords and developers, the shift highlights the need to track demand from flexible workspace operators as well as direct leasing by companies. Flexible operators can lease substantial office areas and serve multiple businesses from a single location, giving them a distinct role in the wider office market.
Still, the narrow gap between co-working and IT/ITeS matters. At 26% and 25%, respectively, the two categories remain closely matched. The data captures a lead during a specific period rather than proof of a permanent change in the market’s demand structure.
Will Flexible Workspaces Maintain Their Lead?
Anarock’s findings establish co-working as the leading occupier category by share of office demand for January-September 2026; whether it can maintain that position through the final quarter and beyond remains to be seen.
The next set of market figures will help show whether flexible workspace demand continues to grow or whether the balance shifts again towards IT/ITeS and other occupier groups. For now, the results point to a more prominent role for co-working in India’s office market and a changing mix of businesses driving leasing activity.
