The office real estate sector has reached new heights in FY25, as flexible workspace demand continues to surge across India. Notably, gross leasing touched a record 77 million sq ft this year. Co-working spaces contributed nearly 15 million sq ft, accounting for 20% of the total. In fact, the sector has tripled in size from 25 million sq ft to 75 million sq ft over the past three years, growing at 20% annually.
Meanwhile, Awfis has emerged as one of the strongest performers in the co-working space. In the first nine months of FY25, the company surpassed market expectations, recording 41% growth—well above its original projection of 30%. Consequently, it expects to close the year with around 40% year-on-year growth.
Furthermore, Awfis is on track with its expansion goals. The company had committed to adding 40,000 seats in FY25. By December, it had already reached 120,000 and is confident of hitting 135,000 seats by year-end.
Significantly, strong domestic drivers are fuelling growth. GCCs (Global Capability Centres), India’s manufacturing focus, the China Plus One strategy, and rising startup and MSME activity have all contributed to sustained flexible workspace demand. Earlier concerns of an offshoring slowdown have been replaced by increased global investment in India.
Currently, Awfis holds a market share of 11–12%. It operates over 200 centres and expects to reach around 220 by FY25-end—four to five times larger than its nearest competitor. However, the company is not chasing growth blindly. It continues to balance scale with profitability.
Importantly, Awfis credits much of its success to its managed aggregation model. Unlike traditional setups, it partners with landlords—mostly HNIs and family offices—who invest in fit-outs. In return, Awfis shares profits, keeping the business asset-light and reducing risk. Notably, 65% of its portfolio follows this model. To date, it has been successfully implemented across 180 locations, supporting 40%+ growth and delivering an 86% return on capital.
In terms of geography, around 89% of Awfis centres are located in tier-1 cities, with the remaining 11% in tier-2 towns. While the company has a presence in smaller markets, it plans to continue focusing its expansion on metro and tier-1 cities, where the bulk of flexible workspace demand remains concentrated.
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