A recent report by Anarock forecasts a significant expansion in the market size of flexible office spaces in India, with projections indicating growth from 55 million square feet (MSF) to 100-140 MSF by 2030. This surge is driven by industry professionals’ increasing preference for co-working facilities, with 54% of Indian companies opting for co-working spaces to curtail expenses. Furthermore, the appeal of co-working lies in its provision of more workspace choices, business continuity, productivity enhancements, and market expansion opportunities. Chairman of the Anarock Group, Mr. Anuj Puri, emphasized the mutual benefits of co-working spaces for workers and employers, citing their flexibility, economic viability, and geographical presence facilitating talent acquisition and retention.
Data from the report reveals that co-working spaces accounted for nearly 18% of the total new office supply in seven major Indian cities in 2023. Additionally, the sector has experienced substantial funding growth, from US$ 167 million (Rs. 1,400 crore) between 2015 and 2019 to US$ 548.7 million (Rs. 4,600 crore) between 2020 and 2023. Rental prices for flexible spaces have also increased, with Mumbai reporting the highest rise at 27% in the last four years, reaching an average monthly rental of US$ 1.9 billion (Rs. 15,900) per flexi space seat in FY24. This growth trend underscores the evolving landscape of workspace preferences in India and the increasing prominence of co-working spaces in commercial real estate.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.