NEW DELHI: India’s flexible office space has surpassed 100 million sq ft, reaching between 110-114 million sq ft from 2020 to 2025, as per a joint report by CBRE and FICCI.
This segment has grown at a compound annual growth rate (CAGR) of 23-25% over the last five years, with total inventory nearly tripling during this period, which underscores the increasing significance of flexible workspaces in the country’s office market.
Bengaluru holds the largest share of flexible workspace, with 30–32 million sq ft, followed by Delhi-NCR at 21-23 million sq ft and Pune at 13.6-14.6 million sq ft. The demand in these markets is primarily driven by IT, technology, and software companies, along with BFSI and professional services firms.
By 2025, IT and technology firms are expected to account for 27-32% of total flex space leasing, while BFSI and engineering/manufacturing sectors are anticipated to hold a 9-14% share each. Business consulting and professional services will contribute 7-12% to the demand.
Global firms dominate flex office absorption, making up 55-60% of demand, whereas domestic occupiers account for 40-45%.
The report emphasizes increased involvement from institutional and public capital, with numerous operators going public or obtaining late-stage funding. As of March 2026, the total market capitalization of listed flexible workspace operators in India was approximately $2-2.2 billion.
Flexible workspaces are becoming integral to the long-term real estate strategies of enterprises, moving beyond mere tactical use. According to CBRE’s India Office Occupier Survey 2025, 55% of occupiers have incorporated flex spaces into their portfolios, a figure expected to rise to 65% by 2027.
The next growth phase is anticipated to be propelled by global capability centres (GCCs), which are increasingly opting for flexible office formats for scalability and cost efficiency. It is projected that the share of GCCs allocating over 10% of their office portfolio to flex spaces will increase to 48% in the next two years, up from 22% currently.
The report also highlighted that the expansion of flexible workspaces across tier-I and tier-II cities allows companies to position themselves closer to talent pools, fostering decentralised growth and transforming workplace strategies across various industries.
