Co-working operators leased 6.5 million sq ft of office space across India’s top cities in H1 2025, marking a 48% year-on-year growth, according to Colliers India. Driven by corporate demand for flexible and managed workspaces, the sector continues to redefine the commercial real estate landscape amid broader expansion of the office market.
Co-Working Sector Leases 6.5 Million Sq Ft in H1 2025, Redefines India’s Office Market
NEW DELHI, June 30: India’s co-working and flexible workspace sector is witnessing a remarkable surge, with operators leasing 6.5 million square feet of office space across the top seven cities during the first half of 2025. According to Colliers India, this represents a 48% increase compared to the same period in 2024.
The data reflects growing demand for managed and flexible workspaces from corporates seeking scalable, cost-effective real estate solutions. Major cities covered in the report include Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Pune, Chennai, and Kolkata.
Flex Space Driving Commercial Leasing Boom
The expansion of the flexible office segment closely follows overall market growth. India’s total office leasing volume in H1 2025 rose to 33.7 million sq ft — a 13% year-on-year increase. Flex operators accounted for a significant share of this activity, further cementing their role as major drivers of office demand.
“Flexible spaces are increasingly establishing themselves as a key demand driver in India’s office market,” said Vimal Nadar, National Director and Head of Research, Colliers India. “Given the current momentum, flex spaces are likely to define contours of commercial real estate in India throughout 2025 and beyond.”
Why Corporates Are Turning to Flex
Industry leaders say the shift is being powered by companies of all sizes integrating flex spaces into their real estate portfolios. The reasons are both strategic and financial — flexibility in scaling operations, reduced capital expenditures (capex), improved employee productivity, and greater collaboration.
“Co-working spaces have become a defining feature of India’s evolving commercial real estate,” said Manas Mehrotra, Founder of 315Work Avenue. “Flex workspace helps corporates adapt quickly to changing business needs while enhancing operational efficiency.”
GCCs and Grade A Supply Fueling the Trend
According to Darshan Govindaraju, Executive Director, Vaishnavi Group, strong leasing is also supported by a steady pipeline of Grade A office developments across major cities. “The confidence of global technology companies and their expansion through GCCs is playing a crucial role in shoring up leasing demand,” he said.
This confidence is further reflected in investment from sectors like BFSI, insurance, and global tech, all of which are actively adopting flex work models as part of hybrid and decentralised workforce strategies.
Outlook: Flex Workspaces Set to Stay in Focus
Shesh Rao Paplikar, Founder & CEO, BHIVE Workspaces, summed up the sentiment: “India’s growth story continues to capture the mindscape of global organisations. Flexible managed workspaces are now a catalyst for sustained office leasing growth.”
With momentum strong and occupier confidence rising, flexible spaces are poised to remain at the heart of India’s commercial real estate transformation through 2025 and beyond.
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