South America Coworking Space Market Outlook, 2030

The South American coworking space market has emerged as one of the most dynamic and rapidly evolving segments in the global flexible workspace industry. Argentina's Resilient Growth Despite economic challenges, Argentina's coworking sector has shown remarkable resilience. Buenos Aires has become a regional hub for digital nomads and remote workers, with operators like La Maquinita and Espacio Cowork leading innovative community building initiatives. Chile's Innovation Focus Chile has positioned itself as the regional leader in coworking innovation, with Santiago hosting numerous tech focused coworking spaces.

The government's Start up Chile program has directly contributed to coworking growth, with spaces like Hub Providencia and WorkingPlace becoming integral to the startup ecosystem. South American coworking spaces have developed a distinctive approach to community building that reflects the region's strong social culture. Unlike their North American or European counterparts, these spaces often function as cultural hubs, hosting art exhibitions, music events, and social gatherings that extend beyond traditional networking. Several South American governments have recognized coworking as a catalyst for economic development and innovation. Uruguay's Plan Ceibal includes provisions for coworking space development, while Peru's Startup Peru program offers subsidies for coworking memberships for approved startups. Colombia's Digital Transformation Strategy the Colombian government's MinTIC short for Ministry of Information and Communication Technologies has partnered with coworking operators to establish Digital Centers in secondary cities, promoting decentralized economic development and digital literacy.

According to the research report "South America Coworking Space Market Outlook, 2030,", the South America Coworking Space market was valued at more than USD 1.35 Billion in 2024. Governments can use tax policies to directly incentivize the growth of the coworking sector. Some countries offer tax credits or deductions to startups that utilize coworking spaces, making membership more affordable and encouraging business formation. Other policies, like a lower Goods and Services Tax rate for small scale coworking clients or concessions on stamp duties for lease agreements, can reduce the financial burden on operators.

Additionally, some governments provide tax holidays or subsidies for businesses that operate in designated innovation zones or revitalize underutilized commercial properties, with coworking spaces being prime beneficiaries of such programs. Future regulatory developments will likely focus on digital nomad visas, cross border remote work arrangements, and integration with broader innovation and entrepreneurship policies. Countries that can provide regulatory clarity while maintaining flexibility for market innovation will be best positioned to capture the growing coworking market opportunities in South America. Regional operators have developed integrated membership models that allow users to access spaces across multiple countries with single memberships, creating a truly continental coworking ecosystem. This development has been particularly important for the growing digital nomad population and multinational companies seeking flexible workspace solutions across the region. Regional trade agreements have begun to include provisions that support the coworking industry, particularly in areas related to service exports and digital economy development. The Mercosur bloc has initiated discussions on harmonizing regulations related to flexible workspace operations, which could significantly reduce regulatory complexity for operators seeking to expand across member countries.

Market Drivers

• Economic Transformation and Entrepreneurship Growth: The South American coworking market is being propelled by a fundamental shift toward entrepreneurship and the gig economy. Countries like Brazil, Colombia, and Chile have witnessed a surge in startup activity, with government initiatives supporting small business development and innovation hubs. The rising cost of traditional office spaces in major cities like São Paulo, Buenos Aires, and Bogotá has made coworking an attractive alternative for entrepreneurs, freelancers, and small businesses seeking professional environments without long term commitments. The region's growing middle class and increasing digitalization have created a pool of professionals who value flexibility and networking opportunities that coworking spaces provide.
• Digital Nomadism and Remote Work Adoption: the acceleration of remote work culture, particularly post-pandemic, has significantly boosted demand for coworking spaces across South America. The region's favorable exchange rates, improving internet infrastructure, and cultural appeal have attracted digital nomads from North America and Europe. Countries like Colombia, Ecuador, and Argentina have become popular destinations for remote workers seeking lower living costs while maintaining productivity. This trend has driven coworking operators to develop specialized services catering to international remote workers, including multilingual support, visa assistance, and community events that facilitate cultural integration.

Market Challenges

• Infrastructure and Connectivity Limitations: Despite improvements, South America still face significant infrastructure challenges that impact coworking space operations. Inconsistent internet connectivity, frequent power outages, and limited transportation networks in secondary cities create operational difficulties for coworking providers. The digital divide between urban centers and smaller cities means that coworking expansion is often concentrated in major metropolitan areas, limiting market penetration. Outdated telecommunications infrastructure in some regions affects the quality of video conferencing and cloud based services that are essential for modern coworking environments, potentially deterring tech savvy professionals and international clients.
• Economic Volatility and Currency Fluctuations: The South American coworking market operates in an environment of significant economic uncertainty, with countries experiencing inflation, currency devaluation, and political instability. These factors create pricing challenges for coworking operators who must balance affordability for local professionals with the need to maintain profitable operations. Currency volatility particularly affects international coworking chains and impacts the purchasing power of the target demographic. Economic downturns can lead to reduced demand as businesses cut costs, while hyperinflation in countries like Argentina makes long-term planning and investment decisions extremely challenging for coworking space operators.

Market Trends

• Technology Integration and Smart Workspace Solutions: South American coworking spaces are increasingly adopting advanced technologies to enhance user experience and operational efficiency. This includes implementing IoT sensors for space utilization optimization, mobile apps for booking and access control, and AI-powered analytics for understanding member behavior patterns. Virtual reality meeting rooms, automated check in systems, and integrated payment platforms are becoming standard features. The trend toward smart buildings with energy efficient systems and automated climate control is gaining traction, particularly in Brazil and Chile, where environmental consciousness is growing among the professional community.
• Specialization and Niche Market Development: the market is witnessing a shift from generic coworking spaces to specialized environments tailored to specific industries or professional groups. Tech-focused coworking spaces in cities like Medellín and Santiago are creating ecosystems that cater specifically to software developers, fintech startups, and digital marketing agencies. Similarly, creative coworking spaces designed for artists, designers, and media professionals are emerging in cultural districts across major cities. Women only coworking spaces and spaces designed for specific age demographics are also gaining popularity, reflecting the market's maturation and the need for more targeted community building approaches.

Private offices are the largest segment in South America's coworking space market because the region's business culture emphasizes personal relationships, confidential deal making, and hierarchical structures that require enclosed spaces for conducting sensitive business discussions and maintaining professional credibility.

The dominance of private offices in South America's coworking space market reflects a unique blend of cultural, economic, and practical factors that distinguish Latin American business practices from other global regions. South American business culture is fundamentally relationship driven, where personal connections, trust building, and confidential negotiations form the backbone of commercial success, making private spaces essential for conducting the intimate conversations that drive business forward.

In countries like Brazil, Argentina, Colombia, and Chile, business dealings often involve extended discussions about family, personal interests, and confidential matters that cannot be conducted in open environments, as these conversations are crucial for establishing the personal rapport that precedes formal business agreements. The region's hierarchical business structure, inherited from both colonial influences and traditional corporate models, places significant importance on status and professional positioning, where having access to a private office signals credibility, success, and trustworthiness to clients and partners. South America's economic landscape is characterized by high levels of informality and cash based transactions, requiring discrete environments for financial discussions, contract negotiations, and strategic planning that cannot be overheard by competitors or unauthorized parties. Language considerations also play a crucial role, as business leaders often need to switch between Spanish, Portuguese, and English during international calls or negotiations, requiring private environments to maintain professionalism and avoid miscommunication.

Professional coworking is the largest segment in South America's coworking space market because the region's emerging economy relies heavily on established businesses, corporate professionals, and formal sector workers who require structured, business-focused environments to maintain credibility and productivity in competitive markets.

Professional coworking dominates South America's coworking landscape due to the region's unique economic structure and professional culture that prioritizes formal business environments over casual or creative spaces. Unlike markets in North America or Europe where creative and entrepreneurial coworking gained early traction, South America's coworking evolution has been driven primarily by established professionals, corporate employees, and traditional businesses seeking flexible office solutions without compromising their professional image. The region's corporate culture, deeply rooted in formal business practices and hierarchical structures, demands environments that mirror traditional office settings with professional amenities, business class meeting rooms, and services that support conventional work patterns rather than creative collaboration. The region's professional workforce, particularly in major cities like São Paulo, Buenos Aires, Mexico City, and Santiago, consists largely of experienced business professionals, corporate executives, and established entrepreneurs who require sophisticated business infrastructure including high speed internet, professional reception services, formal meeting facilities, and administrative support that enables them to conduct business with both local and international clients. South America's economic volatility and competitive business environment have made professional credibility crucial for business success; leading professionals to choose coworking spaces that enhance rather than compromise their professional reputation through premium locations, sophisticated design, and business focused services.

the region's combination of favorable economic conditions, improved digital infrastructure, and cultural adaptability has created an ideal environment for both local remote workers and international digital nomads seeking cost-effective, flexible workspace solutions.

The explosive growth of remote work in South America's coworking market represents a convergence of technological advancement, economic opportunity, and cultural transformation that has fundamentally altered the region's professional landscape. The COVID-19 pandemic served as a catalyst, accelerating the adoption of remote work practices across South American countries and demonstrating that productivity could be maintained outside traditional office environments, leading to a permanent shift in how businesses and professionals approach work arrangements.

This transformation has been supported by significant improvements in digital infrastructure, with countries like Colombia, Chile, and Uruguay investing heavily in fiber optic networks, 5G connectivity, and technology parks that provide the reliable internet speeds and connectivity essential for remote work success. Local professionals have embraced remote work as a means to escape expensive urban centers, reduce commuting costs, and achieve better work-life balance, while still maintaining access to professional environments through coworking spaces that offer the technology, amenities, and networking opportunities necessary for career advancement. Government initiatives across the region have also supported this trend, with countries like Barbados, Ecuador, and Colombia introducing digital nomad visas and remote work programs that encourage international professionals to establish temporary or permanent bases in South American cities, directly benefiting the coworking industry.

They perfectly align with the region's business culture that values both flexibility and professional relationships, allowing companies to maintain essential face to face interactions while adapting to post pandemic work preferences and economic pressures.

The hybrid model's growth stems from its ability to satisfy South America's deeply ingrained preference for personal relationships and face to face interactions while simultaneously addressing the newfound appreciation for flexibility and work life balance that emerged during the pandemic. Unlike purely remote work arrangements, hybrid models allow South American professionals to maintain the personal connections that are crucial for business success in the region, where deals are often made through extended conversations, shared meals, and the trust building that can only occur through in person interactions.

This model has proven particularly attractive to South American companies that recognize the productivity benefits of remote work but understand that their business culture requires regular physical presence for team cohesion, client relationships, and the collaborative problem solving that characterizes the region's approach to business challenges. The region's improving digital infrastructure has made hybrid work technically feasible, with reliable internet connectivity and cloud-based collaboration tools enabling seamless transitions between home, coworking spaces, and traditional offices, while the cultural adaptation to technology during the pandemic has overcome previous resistance to digital communication methods. South America's diverse urban landscape, with its traffic congestion, long commute times, and varying infrastructure quality across cities, has made hybrid models particularly appealing as they allow professionals to choose optimal work locations based on daily circumstances, client meetings, and personal preferences.

The Argentina’s volatile economic landscape which drives businesses and individuals to seek flexible, cost efficient office solutions, coupled with a resilient and burgeoning startup ecosystem.

Argentina's co-working space market is experiencing rapid growth, driven by a unique set of circumstances primarily rooted in its challenging yet dynamic economic environment. Unlike more stable economies where coworking growth might be purely a function of changing work preferences, in Argentina, economic volatility plays a significant role. Businesses, both large and small, face persistent high inflation, currency fluctuations, and an unpredictable regulatory landscape. In such an environment, committing to long-term, rigid traditional office leases becomes a high-risk proposition. Coworking spaces offer an invaluable alternative, they provide unparalleled flexibility.

Companies can rent space on a month to month basis, or even hourly, allowing them to scale their operations up or down rapidly in response to economic shifts without incurring hefty penalties or being tied into expensive, underutilized assets. Argentina boasts a remarkably resilient and innovative startup ecosystem. Despite economic hurdles, the country has a strong pool of highly skilled tech talent and a vibrant entrepreneurial spirit, particularly in cities like Buenos Aires. Sectors like FinTech, AgTech, and Biotechnology are seeing significant growth and investment. These startups inherently gravitate towards coworking spaces because they offer a professional, collaborative environment conducive to innovation and networking, without the financial burden of establishing a traditional office.