Co-Working Firms Lease 8.6 Million Sq Ft Office Space

Synopsis: Co-working firms drive India’s office leasing growth by recording a 32% rise in space absorption to 8.6 million sq ft in H1 2026, reflecting strong demand for flexible workspaces across major business hubs.

India’s flexible workspace sector looks like it’s moving fast, with co-working operators taking a fresh record of 8.6 million sq ft of office space in the first half of 2026, mainly because companies want something more scalable and adjustable from day to day. The momentum, really, points to the managed office providers role getting bigger, as they keep reshaping the country’s commercial real estate scene a bit more every year.  

As per real estate consultancy Colliers India, co-working firms leased 8.6 million sq ft of office space from January to June 2026, versus 6.5 million sq ft in the same stretch last year. That comes out to a 32% year-on-year jump and it lifts the share of flexible workspace operators within total office leasing to 24%. 

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Meanwhile, the wider office market still has traction too, with total gross office leasing across seven major Indian cities rising 6% to 35.7 million sq ft during the first half of 2026. The uptick is backed by continued demand from enterprises, Global Capability Centres (GCCs), technology businesses, and financial services players, all looking for steadier setups.

Bengaluru, Delhi-NCR, and Hyderabad emerge as the leading markets for flexible workspace expansion, together contributing nearly two-thirds of total office space uptake by co-working operators during the period. These cities continue to attract businesses due to strong talent availability, technology ecosystems, and growing corporate expansion.

The increasing preference for flexible workspaces reflects changing workplace strategies among companies. Businesses are increasingly opting for managed offices that provide faster expansion, reduced setup requirements, and flexibility compared with traditional long-term office arrangements.

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While direct leasing by companies from property owners remains a major part of the market, conventional office leasing slightly declines to 27.1 million sq ft from 27.2 million sq ft in the previous year. The rise of co-working operators indicates a shift in how companies approach workplace requirements.

The expansion of flexible workspace providers is also supported by demand from startups, enterprises, and multinational companies looking for ready-to-use office infrastructure. Major operators in India continue to increase their footprint as businesses adopt hybrid work models and prioritise operational flexibility.

Industry experts note that flexible workspaces are becoming a long-term component of India’s office ecosystem rather than a temporary trend. The sector is expected to gain further momentum as companies focus on agility, cost efficiency, and employee-focused workplace environments.