Mumbai, April 9 -- In the first quarter of 2025, co-working operators leased approximately 2.16 million square feet of office space across nine major Indian cities, marking a 43 per cent decline compared to the 3.76 million square feet leased during the same period in 2024. This reduction led to a decrease in their share of total office leasing transactions from 22 per cent to 12 per cent.?
Despite this downturn in the co-working segment, the overall gross leasing of office space experienced a 5 per cent increase, reaching 18 million square feet in January-March 2025, up from 17.1 million square feet in the corresponding period of the previous year. This growth indicates a robust demand for office spaces in the broader market.?
Co-working operators typically rent office spaces from property owners to establish flexible workspaces, which they then sublease to a diverse clientele, primarily corporates. Major players in this sector include WeWork India, Smartworks, Awfis, Incuspaze, Simpliwork Offices, and IndiQube. The demand for such flexible managed workspaces had seen a significant rise following the COVID-19 pandemic, as companies sought more adaptable office solutions.?
The nine cities analysed in this report are Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad, and Kochi. The data suggests that while the co-working sector faced challenges in early 2025, the overall office space market in these metropolitan areas remained resilient, with traditional office spaces witnessing increased leasing activity.
Published by HT Digital Content Services with permission from Construction World.