NEW DELHI: India’s flexible office stock has crossed the 100 million sq ft mark, reaching 110-114 million sq ft between 2020 and 2025, according to a joint report by CBRE and FICCI.
The segment has expanded at a compound annual growth rate (CAGR) of 23-25% over the past five years, with total inventory nearly tripling during the period, highlighting the growing role of flexible workspaces in the country’s office market.
Bengaluru remains the largest flex workspace market with a stock of 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. Demand across these markets continues to be led by IT, technology and software companies, along with BFSI and professional services firms.
In 2025, IT and technology firms accounted for 27-32% of total flex space leasing, followed by BFSI and engineering and manufacturing companies with 9-14% share each. Business consulting and professional services firms contributed 7-12% of demand.
Global companies continue to dominate flex office absorption, accounting for 55-60% of demand, while domestic occupiers contributed 40-45%.
The report noted that the sector has seen increased participation from institutional and public capital, with several operators going public or securing late-stage funding. As of March 2026, the combined market capitalisation of listed flexible workspace operators in India stood at about $2-2.2 billion.
Flexible workspaces are increasingly being integrated into long-term real estate strategies of enterprises, moving beyond short-term or tactical use. According to CBRE’s India Office Occupier Survey 2025, 55% of occupiers already have flex spaces in their portfolios, and this is expected to rise to 65% by 2027.
The next phase of growth is expected to be driven by global capability centres (GCCs), which are increasingly adopting flexible office formats for scalability and cost efficiency. The share of GCCs allocating over 10% of their office portfolio to flex spaces is projected to rise to 48% in the next two years, from 22% currently.
The report added that the expansion of flexible workspaces across tier-I and tier-II cities is enabling companies to operate closer to talent pools, supporting decentralised growth and changing workplace strategies across industries.
