Co-working gains ground in Hyderabad office market

Flexible workspaces account for up to 22 per cent of leasing activity

Samuel Joshua

Co-working spaces are steadily emerging as a key segment within Hyderabad’s commercial real estate market, driven by rising demand for flexible and cost-efficient office solutions.

With startups, SMEs and hybrid work models on the rise, developers and operators are expanding across key business districts as well as select residential catchments. This shift is optimising office space utilisation while reflecting changing occupier preferences in the city’s evolving urban landscape.

Co-working and flexible workspaces account for around 18–22 per cent of Hyderabad’s office leasing activity, underlining the growing significance of the segment.

“Our revenue has grown multi-fold over the past two to three years following the co-working boom in Hyderabad. Today, we proudly position ourselves as Hyderabad’s most loved office space,” said Tarun Mor, founder and ceo, CoKarma Coworking Spaces.

Demand remains concentrated in key hubs such as Hitech City, Raidurg and the Financial District, supported by the city’s strong IT and corporate base. While Hyderabad has emerged as a major co-working hub, cities such as Bengaluru and Gurugram continue to lead in terms of overall seat capacity and total space.

CoKarma currently operates 13 centres across the city with about 4,200 seats. Its Jubilee Hills centre, with around 400 seats, is operating at over 90 per cent occupancy, while most other centres are running at 90–95 per cent levels, indicating sustained demand.

The company is expanding steadily, adding two to three new centres every month, with most fresh demand being absorbed in these locations as existing centres remain near full occupancy.

CoKarma caters to a diverse tenant mix, including startups, SMEs and large enterprises, with clients such as Hyundai, Royal Enfield, Kotak Insurance, Zepto and Zomato. Startups account for about 20 per cent of occupied space, while the rest is taken up by SMEs and corporates. Small and mid-sized Global Capability Centres are also contributing to demand.

Rental rates across most centres range between ₹8,000 and ₹10,000 per seat per month, with flexible pricing models such as daily and monthly passes gaining traction.

Hyderabad’s growing commercial base, supported by improving infrastructure and connectivity, particularly along the Outer Ring Road, continues to support expansion in the segment.

Alongside CoKarma, major operators such as WeWork India, Smartworks, 91Springboard, Awfis and Regus have expanded their presence across key business hubs, reinforcing the growth of co-working within the city’s office market.

FLEXIBLE WORK TREND

• Co-working forms 18–22% of leasing. 

• Occupancy levels at 90–95%. 

• Rentals at ₹8,000–₹10,000 per seat/month. 

• Startups account for about 20% share. 

• GCCs, corporates drive demand. 

• Expansion into new micro-markets continues.