Bengaluru has emerged as the leading city in Asia-Pacific (APAC) for flexible office space, surpassing significant cities like Shanghai, Seoul, and Tokyo. According to CBRE’s ‘H1 2024 Asia Pacific Flexible Office Market’ report, Bengaluru boasts 15.5 million square feet of flexible workspace, solidifying its position as a top hub for coworking and managed office solutions. Delhi NCR follows closely with 10.7 million square feet, highlighting India’s growing dominance in the flexible office space sector.

The report also reveals that Delhi NCR experienced the most significant growth in flexible office stock in 2024, with a 26% increase compared to the previous year. This surge in supply reflects a broader trend across India’s major cities, including Hyderabad and Mumbai. Hyderabad, with 6.8 million square feet, and Mumbai, with 6.1 million square feet, have also ranked in the top 10 for flexible office space in the APAC region.

India’s strong performance in the flexible office sector aligns with its growing demand for managed office solutions. As companies look for more flexible, scalable office spaces, the need for coworking and flexible solutions has surged. Anshuman Magazine, Chairman and CEO of CBRE India, highlighted this shift, noting that the demand for such office solutions is a key driver of India’s rapid growth in the sector.

The APAC region’s overall flexible office stock reached 89 million square feet by mid-2024, a 3.9% increase from the previous year. This expansion indicates a more sustainable growth trajectory compared to the pre-COVID boom. Operators are adapting by focusing on diversifying income sources and ensuring business sustainability, especially after the pandemic. Henry Chin, Head of Research at CBRE APAC, emphasized this shift in strategy, noting that the focus has now moved from rapid expansion to more stable and resilient business models.

India’s flexible office space market dominance is not just about supply growth but also about the changing preferences of businesses and workers. The rise of flexible workspaces reflects broader trends in how companies approach office space. With more businesses opting for coworking arrangements, flexible leases, and hybrid working models, India’s office space market is evolving to meet greater agility and scalability demand.

In addition to growth in supply, there has been a notable shift in the types of spaces in demand. Businesses are increasingly looking for premium, flexible office spaces that provide the agility to scale up or down quickly, without the long-term commitment typically associated with traditional office leases. As companies embrace more dynamic work models, flexible office spaces are expected to play an even more significant role in the future of work.

The report also highlights the increasing role of large, listed developers in shaping the flexible office space market, particularly in cities like Bengaluru, Delhi NCR, and Hyderabad. These developers lead the charge by providing high-quality, sustainable spaces that appeal to businesses seeking flexible, long-term solutions.

The future of India’s flexible office space market looks promising. As demand continues to rise, particularly from the IT sector, Global Capability Centres (GCCs), and startups, India is set to remain a key player in the APAC region’s workspace evolution.

With Bengaluru at the forefront and Delhi NCR, Hyderabad, and Mumbai following closely, India’s flexible office space market is poised for continued growth, driving the future of work across the region.