How to Write a Feasibility Study Report for Coworking Business in India

The coworking space in India is undergoing a robust transformation driven by demand for leasing flexibility, evolving work culture, cost-effectiveness per workstation, and a rise in volumes of start-ups.
 The market is valued at USD 1.94 billion in 2024 as per media reports and growing at a CAGR of 7.4%. It is slated to reach USD 3 billion by 2030. Due to its cost-effectiveness and hybrid working model, SMEs, start-ups, solopreneurs, and freelancers are attracted to coworking spaces. Besides, many big corporates and MNCs are also drawn towards the concept.

Feasibility study to start a co-working space in India is crucial as many MNCs are pioneering the hub & spoke model, wherein one main office is supplemented with a host of spoke offices spread throughout the city. For spoke offices, it makes perfect sense to lease a managed or co-working space as it contains costs and offers flexibility.

Coming to the statistics on the market, the top seven cities represented 27% of the total net absorption of coworking spaces in 2023. The coworking market space reached 2.18 million sq. ft. in 2023 rising from 1.3 million sq. ft. in 2019. Delhi NCR and Bangalore have been at the forefront of the ongoing expansion, accounting for two-thirds of the net absorption. Other tier 1 cities like Pune, Chennai, Hyderabad, etc., have also shown remarkable growth in the segment.

Market Growth Drivers:

• India’s startup culture is booming with more than 1,00,000 recognized start-ups. Coupled with freelancers, it can result in ~1.5 million potential seats. Additionally, SMEs are heavily adapting shared workspaces to cut their operational costs. The shift reflects a bundle of opportunities for coworking spaces & managed offices to thrive.
  
  
• Market research for real estate in India indicates that cost optimization is a key impetus for shared working spaces as it offers impressive savings compared to traditional offices. These spaces are easy to manage from an occupier’s perspective, since there are no additional maintenance and infrastructure costs involved. Coworking companies offer various amenities and avoid long-term lease commitments, making it lucrative for startups and big companies alike.
  
  
• Due to the rise of large-scale co-working providers, there are diverse offerings and competitive pricing available in the market.
  
  
• Coworking spaces have also been successful in fulfilling the demands of large-scale businesses. It caters to needs such as temporary offices for specific projects, monthly rental offices, and meeting rooms for crucial client briefings. Traditional offices do not provide these short-term leases and on-demand offerings.
  
  
• There has been a significant demand for coworking spaces from tier 2 and tier 3 cities due to the rise in entrepreneurial culture. Start-ups and SMEs in these cities focus on cutting operational costs, making co-working a desirable alternative to traditional offices.
  
  
• Market research & feasibility study for commercial real estate in India indicates that coworking providers are diversifying their services beyond traditional offices, penetrating their presence into shopping malls, residential areas, and hotels/resorts. Operating in such areas increases foot traffic and creates a sense of community. Eco-friendly workspaces with a strong focus on sustainability have also been gaining popularity.

Competitive Landscape:

India’s coworking & managed office space is marked by a dynamic and competitive landscape. It has a blend of dominant and emerging brands existing together. The market faces intense competition as operators offer a bundle of features like location, amenities, community building, technology for seamless operations, infrastructure support, and a host of other specialized services.

The market is witnessing remarkable expansion into Tier 2 and 3 cities, which further indicates the popularity of shared working spaces beyond the metropolitan areas. How to write feasibility report for co-working business is becoming increasingly relevant as major companies are stretching their operations in tier 2 and tier 3 cities to benefit from the growing demand. There are also several local players in the space making their presence felt. They are leveraging strategic partnerships (many times with malls and other commercial spaces) & competitive pricing to compete with larger players.

Some key players in the market are:

1. 91Springboard: The brand was established in 2012 with the aim of creating dynamic spaces for work and a supportive ecosystem, strongly emphasizing community building. The brand is a hub for various industries like IT, fintech, marketing agencies, etc. The company operates in major cities including Bengaluru, Delhi, Goa, Gurugram, Hyderabad, Mumbai, Noida, and Pune. Feasibility study to start a co-working space in India can help new players analyze market trends and assess investment opportunities in the sector.
   
   
2. WeWork India: A major international brand having a strong presence in India and a focus on providing premium working spaces. The brand is servicing 8 million sq. ft across the country with 70,000 active members and 90,000 corporate desks. WeWork has a loyal client base in metropolitan areas like Bengaluru, Mumbai, and Gurugram. The company plans to expand its operations in tier 2 and tier 3 cities. With growing demand, market research for real estate in India plays a crucial role in identifying high-potential locations for coworking spaces.
   
   
3. AWFIS: The company operates more than 170 centers across 16 cities, being the largest flexible workspace provider in the country. AWFIS is known for its customized office solutions positioning it as a dominant player in the market. The company provides more than 105,000 seats spread across 5.33 million sq. ft., catering to a wide range of businesses. Market research & feasibility study for commercial real estate in India is essential for businesses looking to understand real estate trends, competitive landscapes, and future growth potential.
   
   
4. IndiQube: The brand holds a strong regional presence across Bangalore spread over 4.5 million sq. ft. with 59 active properties. IndiQube heavily focuses on smart building experience. The company generated a revenue of USD 74.9 million in 2023. As more businesses explore coworking options, understanding how to write feasibility report for co-working business can provide critical insights into financial planning, operational strategies, and space utilization.
   
   
5. COWRKS: The brand focuses on Grade A office solutions and caters to businesses seeking high-quality working environments. COWRKS generated a revenue of USD 38.3 million in 2024 and has a presence in key cities like Delhi NCR and Mumbai. The brand has positioned itself in the premium segment of coworking services. To remain competitive, operators in this space rely on co-working project feasibility assessment services to evaluate market conditions and ensure long-term sustainability.
   
   
6. Behive: It is an emerging player in the market that aims to provide collaborative and productive workspaces. The brand was established in 2016 and has workspaces in more than 27 key locations with further ongoing expansions. Behive's annual revenue jumped from USD 3.8 million in 2023 to USD 7 million in 2024. The rapid rise of brands like Behive highlights the importance of feasibility services for commercial real estate in helping businesses make informed investment and expansion decisions.

How to write the Feasibility Report for Co-Working & Managed Office Spaces

The future of India’s flexible workspace looks promising, driven by evolving work culture, a rise in startups & freelancers, and an upbeat economic outlook. Many businesses cutting across shape & size are pivoting to managed & shared spaces. Well-prepared feasibility reports, in-depth market research, and tailored insights are becoming critical for investors, developers, and business owners alike.

If you are a real estate company, investor, fund manager, landlord, discerning occupier, or any other business entity looking for a feasibility analysis on the segment, The India Watch can be of help. We specialize in conducting in-depth market research and feasibility assessments to provide data-driven insights for strategic decision-making. The scope of service will include (but not limited to the following)

• Market Insights
  
  
• Market size and future potential
  
  
• Competitive insights
   
• Current industry trends
  
  
• Customer assessment and requirements
   

• Market future evolution
  
  
• Value chain analysis
  
  
• Marketing & operational strategies
  
  
• Financial analysis
  
  
• Key success factors
  
  
• Future growth roadmap
  
  

For any further information, feel free to drop us a mail at info@theindiawatch.com 

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