India Co-Working Office Space Market

India Co-Working Office Space Market Overview:

The India co-working office space market size reached USD 271.7 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 829.2 Million by 2033, exhibiting a growth rate (CAGR) of 13.2% during 2025-2033. The market is witnessing significant growth, fueled by rising demand from startups, freelancers, and enterprises adopting hybrid work models. The rising number of co- working offices in Tier 2 metro cities like Indore, Jaipur, Kochi and Lucknow are also gaining traction. Operators offering tech-enabled, flexible, and cost-efficient spaces to meet diverse needs and shift toward agile workspaces continues to reshape commercial real estate, with India co-working office space market share expected to rise steadily.

India Co-Working Office Space Market Trends:

Growth in Tier 2 Cities

The co-working office space market in India is seeing strong momentum in Tier 2 cities such as Jaipur, Indore, Kochi, Lucknow, and Coimbatore. With improved infrastructure, lower real estate costs, and rising talent pools, these cities are becoming attractive hubs for startups, remote teams, and even large enterprises. Companies are expanding beyond metro areas to tap into local markets, reduce operational expenses, and offer employees more location flexibility. Co-working operators are seizing the opportunity by launching new centers in these cities, often with localized pricing and amenities suited to regional demand. For instance, in May 2025, IWG, the UK-based coworking leader, announced its plans to launch its premium brand Signature in India, anticipating growth in the office rental market. Targeting Tier II and III cities, IWG plans 40–50 new centers by 2025, expanding its existing network significantly, particularly in Bengaluru and other key locations. Government incentives for regional business growth and the shift to hybrid work have further supported this trend. As digital connectivity improves and businesses embrace distributed teams, Tier 2 cities are becoming critical drivers in the next phase of India’s co-working expansion, contributing significantly to the market’s geographic and economic diversification.

Rising Enterprise Adoption

Enterprise adoption is playing a major role in driving India co-working office space market growth. Large companies are increasingly choosing co-working spaces to support hybrid work models, decentralize operations, and provide regional access points for employees. These spaces offer flexibility in lease terms, scalability, and ready-to-use infrastructure advantages over traditional long-term leases. Companies in IT, consulting, and financial services are leading this trend, setting up satellite offices in both metro and Tier 2 cities. Co-working providers are responding by customizing spaces to meet enterprise-level standards, including dedicated floors, branded office designs, secure networks, and access control. This shift helps corporates reduce overhead costs, improve employee satisfaction, and maintain operational agility. With rising corporate participation and sustained demand, enterprise usage is becoming a core segment of India’s co-working landscape, significantly contributing to overall market growth in the coming years. According to the report published by the India Brand Equity Foundation (IBEF), India's co-working office space is projected to expand significantly, reaching 125 million sq. ft by March 2027, an increase from 80 million sq. ft in December 2024. This growth is expected to occur at a compound annual growth rate (CAGR) of 21-22%. The share of co-working spaces in the commercial office market could also double to between 12.5% and 13.5% by FY27, primarily driven by demand from start-ups and IT companies.

India Co-Working Office Space Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type, application, and end user.

Type Insights:

• Flexible Managed Office
• Serviced Office

The report has provided a detailed breakup and analysis of the market based on the type. This includes flexible managed office and serviced office.

Application Insights:

• Information Technology (IT and ITES)
• Legal Services
• BFSI
• Consulting
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes information technology (IT and ITES), legal services, BFSI, consulting, and others.

End User Insights:

• Personal User
• Small Scale Company
• Large Scale Company
• Others

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes personal user, small scale company, large scale company, and others.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Co-Working Office Space Market News:

• In May 2025, Realty firm Sumadhura Group launched its co-working brand, Workship, with an initial 1.3 lakh sq ft center in Whitefield, Bengaluru. The company plans to expand by adding three more centers, targeting premium managed office spaces to meet rising demand from sectors like IT, agri-tech, and pharma.
• In January 2025, iSprout launched its first coworking facility in Gurugram, expanding its presence to 23 centers in India. The new 50,000 sq. ft. space features over 900 seating arrangements, catering to the growing demand for flexible work environments. The company plans further expansions across NCR and India in 2025.

India Co-Working Office Space Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India co-working office space market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India co-working office space market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India co-working office space industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.