India's Flexible Office Market Surges, Tripling to 114 Million Square Feet Since 2020
India’s flexible office market has experienced a remarkable surge, tripling from 2020 to 2025, and now stands at 110 to 114 million square feet, according to a joint report by real estate consultancy CBRE and industry body FICCI Maharashtra. The segment has expanded at a compounded annual growth rate of 23–25 per cent over the past five years.
India currently hosts over 500 flexible workspace operators across roughly 2,600 centres. Anshuman Magazine, Chairman and CEO — India, South-East Asia, Middle East and Africa at CBRE, highlighted the significant shift in the role of flex offices. “Flex is now a core component of how India’s leading companies plan and manage their real estate portfolios. The enterprise adoption data suggests that occupiers have moved well beyond experimentation. Flex is being integrated into long-term portfolio planning and demand is being shaped by workforce strategy and geographic flexibility. We expect this integration to deepen further through 2026,” Magazine said.
The report identifies Bengaluru as India’s largest flexible workspace market, with a total stock of 30–32 million square feet. The city’s demand is primarily driven by occupiers from IT, technology and software development, BFSI, and business consulting and professional services, among other sectors. Delhi-NCR ranks second, with a stock of 21 to 23 million square feet, and sees demand patterns similar to Bengaluru, led by IT, technology and software development, BFSI, and business consulting and professional services. Pune follows with 13.6–14.6 million square feet of stock, with its market largely driven by IT, technology and software development, BFSI, and engineering and manufacturing (E&M) sectors.
In 2025, demand for flexible workspaces was led by IT and technology firms, contributing close to 27–32 per cent of total deal volume. BFSI, professional services, and engineering and manufacturing followed. Global occupiers dominated with a 55–60 per cent share, compared to 40–45 per cent from domestic firms. Rising flex adoption is matched by stronger capital market activity, with public listings and late-stage funding driving consolidation. As of March 20, 2026, listed flex players in India had a combined market capitalisation of about $2 to $2.2 billion (about Rs 18,300 crore).
Shirish Barwale, Chairman, FICCI Maharashtra, said, “Over the past decade, the sector has expanded rapidly across Tier I and Tier II cities, driving decentralised growth, lowering entry barriers, and enabling companies to operate closer to talent pools, positioning flexible workspaces for strategic impact in India’s next growth phase.” Barwale added, “However, achieving the $10 billion flexible workspace industry by 2030, as part of the next phase of growth, will require collaboration between industry, policymakers, urban authorities, financial institutions and FICCI through India Flexible Workspace platform. The target is ambitious, yet achievable, if coordinated action across stakeholders and critical growth enablers takes place.”
The report adds that as global capability centres (GCCs) scale in India, their use of flexible workspaces will deepen, driven by speed, scalability, and standardised operations. Rising institutional and public capital is expected to steer more disciplined, network-led expansion, strengthening long-term stability and cementing flex’s role in India’s office market.
