India’s coworking industry hit a record high in 2024, with operators leasing an unprecedented 2.24 lakh seats across eight major cities. The surge in demand is primarily attributed to corporates embracing managed office spaces as part of a ‘Core+Flex’ strategy, which blends traditional offices with flexible workspaces.

“With global enterprises increasingly adopting a ‘Core+Flex’ leasing strategy, combining traditional offices with managed workspaces, flexible workspace demand is expected to maintain its strong growth trajectory in 2025 and beyond,” said Ramita Arora, Managing Director (Bengaluru) and Head- Flex, India, at Cushman & Wakefield.

Bengaluru led the charge for 64,000 seats, followed by Pune (39,000) and Delhi-NCR (38,000). Mumbai (28,000), Hyderabad (26,000), and Chennai (25,000) also saw significant growth. However, Kolkata and Ahmedabad lagged, with only 1,900 seats each.

In addition to rising seat occupancy, the total office space leased by coworking operators surged by 58%, reaching 124.2 lakh square feet across these cities—up from 78.9 lakh square feet in 2023. This growth aligns with India’s broader office market expansion, which recorded a 19% increase in gross leasing activity, totalling 885.2 lakh square feet.

Key industries fueling this demand include IT-BPM, engineering and manufacturing, BFSI, and professional services. As companies prioritize Grade A/A+ assets with premium amenities, sustainability features, and advanced technology integration, the coworking sector is poised for continued expansion.

“Best-in-class amenities, sustainability, and technology integration will continue to shape enterprise flexible workspaces demand in the near to medium term,” Arora added.

The sector is expected to thrive in the coming years, with coworking spaces offering cost-effective, scalable, and employee-centric solutions. As more enterprises recognize the benefits of flexible work environments, India’s coworking market is on track to set new benchmarks in 2025 and beyond.