Report shows coworking spaces in India have doubled in the past 4 years

Coworking spaces are on the rise in India, with demand doubling in the past four years. In the first quarter of 2023, coworking spaces accounted for a 27% share of the net absorption of 8.2 million sq. ft. across the top seven cities, a significant increase from 14% in the same period in 2019.

Bengaluru and the National Capital Region (NCR) were the top contributors to net coworking absorption in Q1 2023, with Pune and Chennai also seeing a significant uptake in coworking spaces. The top seven cities experienced a 90% growth in net absorption of coworking spaces, indicating a shift towards flexible workspaces post-pandemic.

The appeal of coworking spaces lies in their varied locations, cost-effectiveness, and flexibility compared to traditional offices with long lock-in periods. Companies, especially in the IT/ITeS sectors, are increasingly opting for coworking spaces due to these advantages.

Low vacancy levels in Grade A offices in cities like Bengaluru, Chennai, and Pune have further fueled the demand for coworking spaces. In Delhi NCR, low commercial space vacancy levels have also contributed to the growth of coworking setups in areas like Gurugram and Noida.

According to Utkarsh Kawatra, Senior Director at myHQ (ANAROCK Group), there has been a decisive reversal of the negative trend in coworking spaces post-Covid-19. In Q1 2023, southern cities like Bengaluru, Hyderabad, and Chennai saw significant net office absorption, with coworking players accounting for a substantial percentage of the market share. Overall, coworking spaces are becoming increasingly popular among businesses in India, signaling a shift towards more flexible and cost-effective workspace solutions.