Flex Spaces: The Future of Commercial Real Estate in India
Managed and flexible office spaces emerged as the big winners in 2025 in India's commercial real estate sector. This year saw significant milestones, including major listings by WeWork India, Indiqube, and Smartworks, as well as a continued expansion in leasing and the quality of products offered.
Observers and industry players have noted that flex space operators are increasingly collaborating with institutional landlords such as Real Estate Investment Trusts (REITs) and major developers. This collaboration allows them to occupy prime locations and increase per-seat rates. This trend has made flex spaces a viable platform for large enterprises, including overseas firms setting up strategic facilities like Global Capability Centers (GCCs), to enter the Indian market and scale up efficiently.
Harsh Binani, co-founder of Smartworks, emphasized the significance of this shift. 'Flex is the new operating system for commercial real estate. It answers what enterprises have been signaling for years: agility and capital efficiency matter more than asset ownership. At Smartworks, 2025 validated this shift. From leasing Eastbridge—the largest managed office campus globally—to enabling complex GCC expansions, we saw demand mature rapidly. Whether for hub-and-spoke setups or headquarters consolidation, large occupiers are moving to campus-style flex as their primary strategy,' he stated.
A report from real estate consultants Colliers highlights that the total stock of flex spaces in India is expected to surpass 100 million square feet in the top seven markets. Flex operators are projected to take up nearly 20 percent of total office leasing in India in 2025. The report also suggests that flex and managed space players may expand into secondary business districts in Tier-I markets and major Tier-II cities.
Amit Ramani, chairman and managing director of Awfis Space Solutions, India's first major flex space player to be listed on public markets, echoed the sentiment. 'The Colliers report clearly validates the seismic shift underway in India’s office market, a shift where flex has moved from the periphery to the center of occupier strategy. With flex penetration set to cross 10 percent and enterprise demand at an all-time high, the industry is entering a defining phase of maturity and consolidation,' Ramani noted.
The asset-light model of flex space players has also been recognized and appreciated by public markets. According to a recent report by Ambit Capital, flex spaces represent the next growth frontier in commercial real estate, offering up to 20 percent in cost savings for clients compared to traditional leasing. Ambit Capital projects that the flex segment can grow by more than 25 percent annually by 2027, representing a Rs 33,000 crore opportunity. The report recommends 'buy' calls for all three major listed flex space players: Smartworks, Indiqube, and Awfis.
The models of various flex space players differ slightly in terms of fitout risks and revenue arrangements. For instance, UK-based International Workplace Group (IWG), which has a significant footprint in India through brands like Regus, avoids leasing and fitout risks altogether. Instead, it works with landlords to bring properties up to international standards and takes a pre-agreed management fee from the property owner, similar to major premium and luxury hotels.
In conclusion, the rise of flex spaces in 2025 marks a significant shift in India's commercial real estate landscape, driven by the demand for agility and cost efficiency. As the market continues to mature, flex spaces are poised to become an integral part of the commercial real estate ecosystem.
