Mumbai has had the fastest coworking space rental growth since FY20, at 27%.

Mumbai has seen an increase in coworking average monthly rentals over the last four years, at 27%, followed by Gurgaon at 19%, per a recent MyHQ by Anarock report. 

According to a recent MyHQ by Anarock report, Mumbai has seen an average monthly rental growth for coworking spaces over the past four years (27%), followed by Gurgaon (19%). 

The report encompasses six towns: Bengaluru, Delhi, Mumbai, Gurgaon, and Noida.  

In Mumbai, the average monthly rental cost for a flex space seat was Rs 15,900 in FY 2024 compared to Rs 12,500 in FY 2020. 

Gurgaon saw a 19% increase in that period, going from roughly Rs 8,500 per month per seat in FY2020 to roughly Rs 10,100 per month per seat in FY2024. Rentals for Delhi’s flexible workspace increased by 18% between FY2020 and FY2024, going from Rs 10,000 to roughly Rs 11,800 per space per month.  

The average monthly rent for flexible spaces in Bengaluru increased from Rs 7,800 per seat in FY2020 to Rs 9,000 per seat in FY2024, representing a 15% increase. According to the report, the average monthly rental price of flex spaces in Noida increased by 14% over the previous four years, from Rs 6,500 per seat in FY2020 to Rs 7,400 per seat in FY2024. 

“In recent years, the Asia-Pacific area has become a significant market for coworking spaces, and demand is rising quickly. Japan, China, India, and Hong Kong are a few of the major cities that are experiencing rapid expansion. According to Utkarsh Kawatra, Senior Director of myHQ by ANAROCK,” India, as a hotbed for startups across various sectors and industries, is witnessing a steady demand for flexible, economical workspaces.” 

In the current fiscal year, coworking accounted for 18% of the office supply in the top seven cities’ office leasing market. A report by MyHQ by Anarock estimates that the flexible office real estate market will grow from 55 million square feet to 100 million square feet by 2030. 

Financial support for the coworking space has also been encouraging, with more funding coming in after COVID-19 than before. 

An average coworking space of 20,000 square feet can fetch an internal rate of return of 40-70%.  According to the report, up to 70% of businesses  use a hybrid work style. 

According to two out of three industry experts, by 2030, coworking spaces will become more in demand than traditional office spaces. Opening coworking spaces is another move by hotels and food and beverage establishments to increase revenue from their daytime unsold inventory. 

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