Mumbai has emerged as the frontrunner in co-working rental growth among India’s top flexible workspace hubs, according to a recent report by Anarock, a prominent real estate consultancy firm. The city witnessed a substantial 27 percent increase in co-working rentals since FY20, surpassing other major cities such as Gurugram, which recorded a 19 percent rise.
Significant Growth in Co-Working Rentals
The report highlights that the average monthly rentals per seat in Mumbai’s co-working spaces have climbed from Rs 12,500 in FY20 to Rs 15,900 in FY24. Gurugram followed with a notable increase from Rs 8,500 per seat in FY20 to approximately Rs 10,100 per seat in FY24, reflecting a 19 percent growth over the same period.
Comparison Across Major Cities
Anarock’s report further details the rental growth in other significant co-working markets. Delhi, Bengaluru, and Noida experienced increases of 18 percent, 15 percent, and 14 percent, respectively. These figures underscore the rising demand for flexible workspaces across India’s top cities, driven by the evolving needs of businesses and the workforce.
Co-Working Spaces’ Contribution to Office Supply
Co-working spaces have increasingly become a substantial component of the office leasing market. In the current financial year, co-working spaces accounted for 18 percent of the total office supply across the top seven cities. Since 2017, approximately 34 million square feet (msf) of new co-working stock has been added, indicating the robust growth and acceptance of this flexible workspace model.
Driving Factors Behind the Surge
The surge in co-working rentals is attributed to several factors. The flexibility offered by co-working spaces is particularly appealing to startups and small to medium-sized enterprises (SMEs) looking for cost-effective and scalable office solutions. Additionally, the hybrid work model adopted by many large corporations has further fueled the demand for flexible workspaces.
Future Outlook
Looking ahead, the co-working sector is poised for continued growth. The integration of technology and the emphasis on creating collaborative work environments are expected to further enhance the attractiveness of co-working spaces. As businesses increasingly prioritise flexibility and employee well-being, the demand for co-working spaces is likely to sustain its upward trajectory.
Mumbai’s leading position in co-working rental growth underscores the dynamic nature of India’s flexible workspace market. With significant contributions from other major cities, the co-working sector is set to play a pivotal role in shaping the future of office leasing in the country.
