Delhi-NCR Overtakes Bengaluru as the Flex Office Capital

Delhi-National Capital Region (NCR) has emerged as India’s top destination for flexible workspaces, surpassing Bengaluru, the country’s leading office market. With a dominant 42% share in flex office leasing, Delhi-NCR has capitalized on strong corporate demand, superior infrastructure, high-quality office spaces, and large-scale transactions.

The Rise of Flex Offices in NCR

Flexible workspaces have become an integral part of India’s commercial real estate, accounting for a record-breaking 20% share of the 77.2 million sq. ft of office leasing in 2024, according to JLL India. Delhi-NCR led the way among all major cities, securing 15.3 million sq. ft in flex leasing activity. Pune followed closely, while Bengaluru, once India’s flex office hub, slipped to third place. As of 2024, the total flex office stock reached 74 million sq. ft, surpassing one million seats across the top seven cities.

Key Drivers Behind Delhi-NCR’s Growth

Delhi-NCR’s dominance in the flex office sector is not just due to its residential real estate boom but also its thriving commercial office market. Several factors have fueled this growth:

• Diverse corporate demand: Tech firms, flex space operators, and consulting companies heavily invest in NCR.
• Robust infrastructure: Well-connected transport networks and modern office buildings attract businesses.
• Skilled talent pool: The region’s large workforce makes it a prime business hub.
• Premium office supply: Grade-A office spaces have facilitated the expansion of flexible workspaces.

Experts believe that while Bengaluru and Delhi-NCR will continue to compete for the top position, NCR must expand beyond Gurugram, its most in-demand market, to maintain its lead.

Prime Locations for Flex Offices in NCR

Gurugram remains the epicentre of flexible workspace leasing, driven by its premium office supply and major corporate deals:

• Google leased 550,000 sq. ft from Table Space in Gurugram.
• Smartworks, gearing up for a public listing, leased 470,000 sq. ft in DLF City-V.
• Other Smartworks locations in NCR include Golf View Corporate Towers, RK 4 Square, and ASF Insignia.
• WeWork expanded its footprint by leasing 117,000 sq. ft in DLF CyberCity.

How Flex Offices Are Reshaping Corporate Strategies

Businesses, including Global Capability Centres (GCCs), increasingly use flexible office solutions to optimise costs and ensure scalability. Many companies start with flex spaces for agility and later transition to a hybrid model combining traditional and flexible offices.

Additionally, green-certified office spaces are becoming the industry standard. Over two-thirds of all flex office leasing in 2023 was in eco-friendly office parks, highlighting the rising preference for sustainable workspaces. Enterprise demand has surged, with businesses leasing a record 183,200 flex seats in 2024.

The Future of Flex Offices in India

JLL forecasts that by 2026, the operational footprint of flex office spaces across India’s top seven cities will exceed 100 million sq. ft. While Bengaluru and Delhi-NCR will remain the dominant markets, other cities like Hyderabad, Pune, and Chennai are witnessing rapid growth, signalling widespread acceptance of flexible workspaces.

Tier-II and Tier-III cities are also emerging as new frontiers for flex office expansion. Operators are increasingly setting up centres in Indore, Kochi, Coimbatore, and Ahmedabad, broadening the reach of flexible workspaces across India.

Conclusion

Delhi-NCR’s rise as India’s flex office capital reshapes the country’s commercial real estate landscape. The region is poised for continued growth with strong corporate demand, high-quality infrastructure, and an increasing shift towards sustainable workspaces. As businesses embrace hybrid and flexible work models, NCR’s commercial real estate sector is set to thrive, reinforcing its status as a prime hub for modern workplaces.