Flexible office market surges 3X to 110 mn sq ft; Bengaluru tops, followed by Delhi-NCR

The flexible office space market has surged to 110 million sq ft, growing at a 23-25% CAGR since 2020. Bengaluru tops the list with 30-32 million sq ft

Flexible office space in India has crossed the 100 million sq. ft. mark, with total inventory tripling between 2020 and 2025 to reach 110–114 million sq. ft., growing at a 23–25% CAGR over the past five years. The sector now comprises over 500 operators across nearly 2,600 unique centres. Bengaluru leads as the largest flexible workspace market with 30–32 million sq. ft. of stock, followed by Delhi-NCR at 21–23 million sq. ft, a report by CBRE India said on March 24.

Flexible office space in India has crossed the 100 million sq. ft. mark, with total inventory tripling between 2020 and 2025 to reach 110–114 million sq. ft., growing at a 23–25% CAGR over the past five years. (Photo for representational purposes only) (Unsplash)

Bengaluru is followed by Delhi-NCR with a stock of 21-23 mn. sq. ft. and Pune at 13.6-14.6 mn. sq. ft. Like Bengaluru, Delhi-NCR witnesses demand from sectors such as IT, technology and software development, BFSI, and Business Consulting and Professional Services. Pune’s (13.6 to 14.6 mn sq ft) market is driven by sectors such as IT, technology and software development, BFSI, and Engineering and Manufacturing (E&M).

In 2025, flexible space demand was led by IT, technology and software development companies, accounting for a 27-32% share of the total deal volume. This was followed by BFSI and E&M at 9-14% each, and Business Consulting and Professional Services at 7-12%, as per the report titled ‘Flex-plosion’: India’s Flexible Workspaces Era’ released by real estate consultancy CBRE and industry body FICCI at the 3rd edition of the India Flexible Workspace Summit 2026.

Global companies account for a majority share of flex demand. In 2025, 55-60% of the demand came from such occupiers, with domestic companies accounting for the remaining 40-45%, it showed.

The scale-up in flex penetration is also being matched by deeper capital-market participation, with multiple operators securing public listings and meaningful market capitalisation. Public listings and late-stage funding are driving consolidation and strengthening scale as a competitive advantage. As of March 20, 2026, the total market capitalisation of listed flex players in India stood at $~2-2.2 billion.

Going forward, the growing presence of institutional and public capital is expected to shift flex growth towards more disciplined, network-led expansion, enhancing the sector’s long-term stability and reinforcing its role within India’s office market.

Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East and Africa, CBRE, said that flex offices have earned their place as a structural pillar of India's office market rather than a supplementary add-on.

“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,” he said.

"Over the past decade, the sector has expanded rapidly across Tier I and 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. However, achieving a $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,” said Shirish Barwale, chairman, FICCI Maharashtra.

Global Capability Centres continue to scale in India

The report also notes that as global capability centres (GCCs) continue to scale in India, their adoption of flexible workspaces is expected to deepen over the medium term, driven by operational models that favour speed, scalability and standardised workplace environments.

GCCs may opt for flex spaces as an entry strategy because the asset-light model could allow them to scale quickly, minimise upfront capital commitments, and test markets with greater flexibility. In two years, the share of GCCs maintaining over 10% of their office portfolio as flex workspaces is projected to rise to 48% from the current 22%.