Co-working office space leasing dips by 43%: CBRE report

Leasing of office space by co-working operators declined 43% annually to 21.6 lakh square feet in the January-March quarter this year across nine major cities, according to a CBRE report

The co-working space operators, which mainly provide managed flexible workspace to corporates of all sizes, had rented 37.6 lakh sq ft of office space in the year-ago period.

Real estate consultant CBRE data showed that the share of co-working space operators in the total office leasing transactions declined to 12% in the latest March quarter from 22% in the year-ago period.

The co-working players take office space on rent from property owners to establish their centres and then sub-lease to clients that are mainly corporates.

WeWork India, Smartworks, listed firm Awfis, Incuspaze, Simpliwork Offices, and IndiQube are some of the major co-working players. The demand for flexible managed workspace rose significantly post-COVID-19 pandemic.

Overall, the total gross leasing of office space rose 5% to 180 lakh sq ft in January-March 2025 across nine cities as against 171 lakh sq ft in the year-ago period.

These nine cities are Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad, and Kochi.

Ram Chandnani, Managing Director, Advisory and Transaction Services, CBRE India, said, "India is rapidly evolving as a global hub for GCCs, with multinational firms leveraging its skilled workforce to drive innovation and digital transformation."

The GCCs are expected to account for nearly 35-40% of total office space absorption in 2025, with expansions not just in metro cities but also in emerging business hubs, supported by favourable state policies, he said.

"While US firms remain dominant, European and Asian corporations are increasingly establishing GCCs in India, drawn by its cost-efficiency and mature operational ecosystem," Chandnani said.

The technology and BFSI sectors will continue to drive this demand, he added.