Mumbai: India’s office real estate market has been undergoing a massive shift in the last few years. The process accelerated after the pandemic. At the centre of this transformation is the growing popularity of co-working spaces. Once seen as the domain of start-ups, these shared workspaces are now attracting everyone, from freelancers to multinational corporations.
As per the recent Colliers India report, co-working operators leased a record 6.5 million sq. ft. in the first half of 2025—a 48% jump year-on-year. This boom helped push total office absorption across the top seven cities to 33.7 million sq. ft., up 13% from last year.
While traditional leasing still dominates, the rise of managed and co-working spaces is reshaping demand patterns and developer priorities. This isn’t just about desks and meeting rooms. For businesses of all sizes, they offer flexibility, cost control, and scalability, including a whole range of facilities such as cafes, gyms, spaces for leisure and recreation, etc. and recreation—qualities that are hard to ignore in today’s environment.
NCR in the Spotlight
Viineet Chellani, Founder and CEO, Asset Deals, says, ”Gurugram and Noida are at the forefront of this flex-space boom. Large enterprises, especially GCCs (Global Capability Centres), are opting for flexible setups to streamline operations. The Dwarka Expressway and Golf Course Extension Road are seeing particularly high traction due to improved connectivity and premium supply”.
Ashwani Kumar, Pyramid Infratech, says, “Gurugram’s office market is evolving beyond traditional hubs like Cyber City. Areas like Sector 68 and the Dwarka Expressway are attracting both co-working players and corporates looking for Grade-A spaces with plug-and-play facilities. We’re seeing growing demand from co-working players and corporates seeking plug-and-play Grade-A spaces.”
Prakash Mehta, Chairman and Managing Director, Ocus Group, said ”These corridors offer scalability, which is critical for co-working brands expanding their footprint. Sector 99 is seeing demand from mid-sized firms and startups, while the Dwarka Expressway is drawing larger enterprises due to its proximity to the upcoming international airport and metro connectivity.”
It’s not just about affordability anymore. Developers are offering premium co-working environments with curated experiences. And the demand is shifting.
Ajendra Singh, Vice President, Sales and Marketing, Spectrum@Metro, says, “Today’s businesses are seeking more than just functional office space—they’re drawn to work environments that offer a lifestyle-driven experience. Flexible workspaces integrated within retail destinations are gaining momentum, offering professionals access to shopping, dining, wellness, and collaborative zones all in one place. This convergence of work and leisure is especially appealing in NCR, where companies are willing to invest in premium, convenience-led spaces that enhance employee satisfaction and productivity.”
Industry experts say flexible workspaces are now a core part of the office leasing story. Colliers India estimates they could account for 20–25% of all leasing by 2026, driven by hybrid work models and the expanding GCC footprint. Flex spaces bring cost efficiency and ease of operations, making them attractive to both startups and MNCs as per the report.
With vacancy levels falling in prime corridors, more developers are integrating flex components into new projects. Co-working brands, meanwhile, are eyeing Tier-2 cities where demand is rising fast. As a result, the line between traditional offices and co-working spaces is vanishing. In NCR, landlords are partnering directly with flex operators to stay ahead.
