Co-Working Office Space Leasing Drops 43% in Q1 2025 Across Nine Indian Cities

09 Apr 2025 CW Team

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.?

Infrastructure Energy

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