India's flexible workspaces are booming—set to hit 125 million sq ft by 2027
India's flexible workspace scene is growing fast, with the market expected to reach up to 125 million sq ft by March 2027, according to ratings agency ICRA.
Flexible offices will make up a much bigger chunk of commercial spaces—jumping from just over 5% in 2020 to around 13% in the next few years.
What's driving the demand?
Leasing is strong: about 13 million sq ft was snapped up in FY24 alone, thanks to enterprises, startups, and local firms.
IT companies and Global Capability Centers (GCCs) are major players—GCCs now take up nearly half of all flexible workspace seats as they ramp up work in R&D and AI.
Bengaluru leads; smaller cities catching up
Bengaluru remains the top spot for flex spaces, holding about a third of total supply. Delhi-NCR and Pune follow close behind.
Secondary business districts are popular for their good connections and lower costs, while Tier II cities collectively, including Ahmedabad and Jaipur, could soon claim up to 15% of the market by 2027.