Thanks to a growing startup scene and the rise of Global Capability Centers (GCCs), India’s commercial real estate is booming. One sector leading this charge is co-working, which now plays a key role in shaping the future of office space across the country.

Over the past three years, office real estate demand in India has tripled—from 25 million to 75 million square feet. Co-working alone now accounts for 15 million of that total. Flexible workspaces are no longer just a trend; they’re a core part of how big and small companies choose to operate. In FY25, gross leasing reached a record-breaking 77 million square feet, showing that businesses are betting big on office growth.

Among the major players, Awfis Space Solutions is seeing standout performance. The company has reported a 41% growth in just the first nine months of FY25, exceeding its initial expectations. By the end of the fiscal year, Awfis expects to close with a 40% year-on-year expansion, including adding 40,000 new seats, bringing total capacity to around 135,000, serving the growing appetite for flexible, ready-to-move-in workspaces.

India’s appeal as a commercial destination is growing stronger. While large global firms continue expanding here, many mid-sized international companies are also entering the market. Factors like the government’s focus on manufacturing, the ‘China Plus One’ strategy, and a thriving startup ecosystem create long-term demand for dynamic office spaces.

Awfis currently holds about 11-12% of the co-working market share, operating over 200 centres to reach 220 by the end of FY25. What sets it apart is its unique “managed aggregation model.” Rather than owning expensive real estate or bearing heavy fit-out costs, Awfis partners with landlords, mostly HNIs and family offices, who handle the capital investment. In return, they receive a larger share of profits. Now applied to 65% of its portfolio, this asset-light model allows the company to scale quickly without high risk.

This approach has paid off. Awfis boasts an 86% return on capital and continues to grow at over 40% annually. Most of this growth is concentrated in metro and tier-1 cities, where demand for flexible office solutions remains the strongest.

As the country continues shifting toward hybrid work and startup-driven growth, companies like Awfis are reshaping how India works, offering modern, scalable spaces that meet the needs of today’s fast-moving businesses.