Coworking in India is Getting Bigger and Better

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Coworking in India is Getting Bigger and Better

Since the past decade, the coworking industry has experienced an impressive surge in popularity. Initially, it was a preferred choice for freelancers, startups, and small businesses seeking a flexible workspace solution.

However, today, we are seeing an increasing number of large corporates embracing the concept of coworking spaces as well. According to a recent report, technology occupiers in major cities are driving the demand for flexible office spaces. Top tech companies currently occupy 50% of the total flex space in India. 

Many companies, including those in engineering, manufacturing, and BFSI (banking, financial services, and insurance), embrace hybrid work models incorporating flex spaces. These businesses recognize the numerous advantages that coworking spaces provide, such as affordable, flexibility, and access to high-quality conveniences and services. 

Recently, coworking providers have redirected their attention towards accommodating bigger corporate clients. By providing custom-designed spaces and tailored services to meet unique requirements, they ensure the satisfaction of these clients.

Increasing Demand for Co-working Spaces in Smaller Cities

Established startups have recently become a common trend in several cities across India. Interestingly, startups are not just emerging in the big cities but also in smaller ones as the Indian startup ecosystem continues to expand and evolve. These cities include Pune, Ahmedabad, Bhubaneswar, Jaipur, and others. 

The growth of startups in these cities can be attributed to several factors, such as the availability of modern infrastructure, the confidence of local investors, support from the state government, and a pool of talented individuals.

Increased startups have also boosted the demand for coworking spaces in these cities. The coworking space initiative also offers young talented startups a base for growing their businesses.

As we know, real estate rates have reached the skies, and young startups cannot afford such high rental rates at such an initial stage of their startups. Suppose they even consider leasing a property for a certain amount of time. In that case, they need to spend handsome bucks around all the leasing properties, such as maintenance fees, expenses for the mandatory things on the property, office furniture, electronics and gadgets fittings, and so much more. 

With all these expenses to bear, a startup will soon close down even before it starts up. Therefore, the need for coworking space in Ahmedabad and other smaller cities has skyrocketed in recent years.

Main Trends of Coworking Spaces

1. Rise in Hybrid Jobs

The demand for workplaces that offer flexible options and incorporate hybrid work technologies will likely continue to increase. This is because more and more businesses are realizing the numerous benefits associated with this approach. Companies can enhance their flexibility and agility by adopting a hybrid work model, increasing productivity and efficiency.

Furthermore, outsourcing workspace delivery allows businesses to save on capital expenses, a major factor in today's competitive market. As a result, the hybrid work model is poised to become the new normal, surpassing traditional remote work options or working from home full-time.

2. Flexible and Highly Negotiable

The trend of utilizing coworking spaces has gained momentum as it provides companies, freelancers, and startups with a convenient and adaptable workspace solution. The advantage of not going through the tedious process of renting or leasing commercial properties is a significant plus point. 

With the proliferation of coworking spaces, numerous options are now available that cater to the needs of businesses, including those that operate 24/7, enabling swift and efficient business operations.

3. Tier 2 Cities are The New Trend Setters

It's worth noting that coworking spaces are experiencing a surge in popularity in large metropolitan areas and many major non-metropolitan cities. This is largely because some tier 2 cities have limited or unreliable transportation options, making commuting to and from work a major challenge for job seekers. 

By offering a flexible and remote work environment, coworking spaces provide a valuable solution for those looking to work comfortably and efficiently from a location that suits their needs.

4. Productivity

Research has revealed that having a limited workspace at home can harm an individual's mental well-being and productivity. The challenges of working remotely, such as household distractions and time spent on non-work-related tasks, can lead to missed deadlines, resulting in stress and anxiety. 

In the future, companies that prioritize their employees' well-being will focus on creating a stress-free work environment. This may include incorporating meditation rooms and gaming areas to help employees relax and recharge. These changes will help foster a healthy work-life balance and promote employee happiness and satisfaction.


In recent years, coworking spaces have become a highly sought-after solution for large corporations seeking to streamline their operations and reduce costs while maintaining high productivity. With the ability to scale up or down as needed, these flexible workspaces offer a more cost-effective solution than traditional office spaces, providing a range of amenities and services that cater to the unique needs of modern businesses. 

Technological advances and security measures have addressed privacy and security concerns surrounding coworking spaces, making them a viable option for even the most security-conscious corporations. As a result, we expect continued growth in the coworking industry, with more providers tailoring their offerings to meet the specific needs of larger corporations. 

From state-of-the-art IT infrastructure to customized meeting rooms and office layouts, coworking spaces are poised to become an essential part of the corporate landscape, offering unparalleled flexibility, collaboration, and innovation to businesses of all sizes.

If you are searching for a coworking space in Ahmedabad, contact us or visit RES Management and consult the best real estate consultants in town.

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