India Coworking Space Market Assessment, By Type [Coworking Centre, Serviced Office Centre, Shared Office], By Industry Vertical [Information Technology (IT), Legal Services, Consulting, Banking, Financial Services and Insurance (BFSI), Real Estate, Marke

India Coworking Space Market Assessment, By Type [Coworking Centre, Serviced Office Centre, Shared Office], By Industry Vertical [Information Technology (IT), Legal Services, Consulting, Banking, Financial Services and Insurance (BFSI), Real Estate, Marketing Others], By End User [Individual, Startups/Small and Medium Scale Companies, Large Enterprises, Others], By Business Model [Revenue-sharing, Sub-lease Model, Owner-operator], By Region, Opportunities, and Forecast, FY2017-FY2031F

The Indian co-working space market size was estimated at USD 0.63 billion in FY2023 and is projected to reach USD 1.53 Billion in FY2031, growing at a CAGR of 13.47% from during the forecast period FY2024-FY2031. The trend towards coworking spaces is being driven by the growth of the economy and remote work, which has led to an increasing number of professionals and freelancers looking for flexible and affordable workspaces. As a result, coworking spaces are becoming increasingly popular in major Indian cities such as Bangalore, Mumbai, and Delhi, and are expected to continue to grow in popularity in the coming years.

Higher Demand by Startups, especially in Tier-2 & 3 Cities

In recent years there has been a significant increase in the number of startups in India opting for co-working spaces due to their low cost. Rental rates are also increasing significantly over time, thus making it difficult for small startup companies to survive on its own. Leasing a typical workplace in a metropolitan region is expensive for organization of any size. Startup culture has gradually gained traction mainly in Tier 2 and 3 cities as users only pay for what they use and rent; there are no hassles or outlays for maintenance and repair, which are common in traditional workplaces. Coworking spaces offer a range of amenities, including high-speed internet, meeting rooms, printing, and scanning facilities. India has the 3rd largest startup ecosystem in the world with more than 80,000 recognized startups in 2022 which are further estimated to grow at a double digit CAGR. Such factors are likely to augment the co-working spaces market in India in coming years.

Technological Advancements in Co-Working Space Market

The Indian co-working space market has witnessed significant technological advancements in recent years. Many co-working spaces are incorporating advanced technologies such as AI, IoT, and automation to enhance their services and create more efficient workspaces. One significant trend is the use of mobile apps that allow co-workers to book meeting rooms, desks, and other facilities with ease. Some co-working spaces are also incorporating facial recognition technology to provide secure access to the premises.

Impact of COVID-19 on India Co-Working Space Market

The pandemic had a significant impact on the coworking space market in India. With the implementation of strict lockdowns and social distancing measures, many businesses shifted to remote work, resulting in a decrease in demand for coworking spaces. As a result, coworking spaces in India saw a decline in occupancy rates and a decrease in revenue. However, as the pandemic situation improved, the coworking market in India witnessed a gradual recovery. Coworking spaces have started implementing new health and safety measures to ensure the safety of their members, and some are also offering flexible and affordable plans to attract new customers.

Key Player Landscape and Outlook

Coworking space in India is a growing trend because it is more cost-effective and flexible. The demand for coworking spaces in India has recently increased dramatically, and this trend is projected to continue. Companies such as Innov8 Inc, 91 Springboard Business Hub Pvt. Ltd and Awfis spaces solution Pvt. Ltd. are coming up with strategic growth and expansion plans. Awfis is planning to build a strong system in Tier II cities in accordance with its expansion goals in developing metros.

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Market Xcel reports are based on qualitative and quantitative data collected through ‘on-ground’ primary research interventions. Based on our in-depth research, our reports can also provide granular city/state level market size data. The report includes deeper actionable insights provided by the industry experts & Key Opinion Leaders thus offering cutting-edge business solutions. The forecast data included in the report is based on ‘Drivers based forecasting’ technique ensuring accurate decoding of the future.