NEW DELHI: India’s flexible workspace market is poised for significant growth over the next two to three years. Flex office space across the top seven cities is expected to exceed 100 million sq ft by 2027, rising from 72.3 million sq ft in 2025, as reported by Colliers India.
As operators continue to expand, the percentage of flex space in the overall office market is projected to increase from 8.5% in 2025 to 10.5% by 2027. This growth will be fueled by rising enterprise demand, with the average annual seat uptake anticipated to grow by 25% to around 200,000 seats in 2026 and 2027, compared to roughly 160,000 seats annually in 2024 and 2025.
Bengaluru remains the leader in India’s flex market, comprising 31% of total flex stock with over 22 million sq ft of operational space. Delhi-NCR follows with approximately 12.5 million sq ft, and together these two markets represent nearly half of the nation’s flex inventory. Pune stands out for its high flex penetration rate of 11.5%, largely driven by sustained demand from technology companies, BFSI firms, and start-ups. Meanwhile, Chennai has experienced rapid growth, achieving over five-fold expansion in flex stock since 2021.
Enterprise occupiers are the backbone of flex space demand, accounting for nearly 70% of total seat uptake. Technology and BFSI sectors combined make up 60–65% of this demand, while engineering, manufacturing, and consulting sectors are expected to expand their flex presence, each contributing 10–15% of enterprise seat uptake over the next two years.
Global Capability Centres (GCCs) have become a significant growth factor for flex spaces. In 2025, GCCs were responsible for 40–45% of enterprise seat uptake, and this figure is projected to climb further, potentially accounting for nearly half of total enterprise demand in 2026 and 2027 as they evolve into higher-value areas such as R&D, analytics, and artificial intelligence.
On the supply side, operators are increasingly prioritizing fully managed and customizable workspaces, incorporating technology and sustainability features to meet enterprise needs.
In tier-I cities, Secondary Business Districts (SBDs) have emerged as preferred flex hubs, accounting for over half of Grade A flex space uptake in the past five years, due to their proximity to talent pools and relatively lower occupancy costs. At the same time, flex operators are ramping up expansion in tier-II cities like Ahmedabad, Coimbatore, Jaipur, and Kochi, where seat rentals are 30–35% lower than in tier-I markets. By 2027, tier-II cities are expected to represent 10–15% of India’s flex stock, the report indicates.
