India’s Co-working Sector Records 48% Surge in Office Leasing in H1 2025: Colliers
India’s co-working and flexible office space market continues its upward trajectory, with a significant rise in leasing activity. According to real estate consultancy Colliers, co-working operators leased 65 lakh sq ft of office space across the top 7 Indian cities during January–June 2025, marking a 48% year-on-year increase.
This surge underscores the growing preference for flexible workspaces among startups, large corporates, and global capability centers (GCCs) amid the evolution of hybrid work models and decentralized office strategies.
Top Performing Cities: Bengaluru and Hyderabad Lead the Way
The seven cities tracked in the report include Bengaluru, Hyderabad, Mumbai, Delhi-NCR, Pune, Chennai, and Kolkata. Among these:
- Bengaluru and Hyderabad accounted for nearly 60% of total co-working leasing activity.
- Mumbai and Delhi-NCR also saw notable upticks, with increased enterprise demand.
- Chennai and Pune witnessed consistent growth, driven by local startups and IT services.
This trend reflects not only geographic diversification but also deepening demand in emerging micro-markets within these metros.
Key Drivers Behind the Growth
Several factors have contributed to the robust growth in office leasing by co-working operators:
- Shift to Hybrid Work: Enterprises are adopting flexible seat configurations instead of long-term leases.
- Cost Optimization: Companies prefer managed spaces to reduce capital expenditure.
- Demand from GCCs and Startups: The surge in global capability centers and funded startups has driven bulk seat absorption.
- Expansions by Large Co-working Brands: Operators like WeWork, Smartworks, Awfis, and Indiqube are aggressively expanding footprints.
Segment-wise Demand Analysis
According to the report:
- Enterprise leasing accounted for over 55% of co-working space demand in H1 2025.
- Freelancers and startups contributed to the remaining demand, especially in Tier-2 micro-locations within Tier-1 cities.
- Flex seat demand rose in sectors such as fintech, consulting, D2C, and SaaS.
Notably, managed office providers are gaining market share by offering customizable, scalable, and plug-and-play solutions.
Expert Insights from Colliers
Colliers India’s report notes that the flexible workspace industry is fast becoming a mainstream office strategy for companies looking to align real estate with business agility.
“The rapid growth of co-working leasing in the first half of 2025 shows the maturing role of flex workspaces in enterprise portfolios. We expect this momentum to continue through the second half of the year,” said an industry expert at Colliers.
Outlook for H2 2025 and Beyond
With increasing demand from global companies and domestic enterprises alike, co-working operators are projected to close the year with over 1.2 crore sq ft of leasing, which would mark the highest annual absorption ever recorded in the segment.
Colliers forecasts further growth in customized enterprise solutions, AI-driven space management, and ESG-compliant office designs. Cities like Ahmedabad, Indore, and Kochi may also see fresh activity from national co-working brands.
Conclusion
The sharp 48% rise in office leasing by co-working players in H1 2025, as highlighted by Colliers, confirms the sector’s resilience and adaptability in a post-pandemic world. With flexible work becoming the norm, co-working operators are expected to play a vital role in shaping the future of commercial real estate in India.
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