Co-working Space Leasing Down 43% in Q1 2025: CBRE
Apr 05, 2025 17:04
Co-working space leasing in India declined 43% in Q1 2025, according to CBRE, while overall office space leasing rose 5%.
Photograph: Kate Munsch/Reuters
New Delhi, Apr 5 (PTI) Leasing of office space by co-working operators declined 43 per cent annually to 21.6 lakh square feet in January-March quarter this year across nine major cities, according to CBRE.
The co-working space operators, who mainly provide managed flexible workpace to corporates of all sizes, had rented 37.6 lakh sq ft 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 per cent in the latest March quarter from 22 per cent in the year-ago period.
The co-working players take office 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 has risen significantly after the Covid pandemic.
Overall, the total gross leasing of office space rose 5 per cent 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 & 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 per cent 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.
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