Flexible workspaces are no longer just a trend — they are now a key part of India’s real estate strategy, especially in Tier-I cities, and are rapidly gaining ground in Tier-II locations. Driven by the rise of hybrid work, cost pressures, and the need for agility, companies are rethinking how and where they work.

“In Tier-I cities like Bengaluru, Mumbai, and Hyderabad, flexible workspaces have become integral to the corporate ecosystem,” said Sparsh Khandelwal, founder of a coworking provider. These cities now boast over 72 million sq. ft. of flex workspace stock, with Bengaluru leading the charge at 22–24 million sq. ft. High occupancy rates — 94% in Mumbai and 92% in Delhi NCR — confirm the soaring demand.

The story is not limited to metro cities. Tier-II hubs such as Jaipur, Indore, Kochi, and Lucknow are seeing a quiet boom in flex space adoption. The hub-and-spoke model, where firms operate smaller satellite offices alongside a central headquarters, is gaining popularity. “Operating in Tier-II cities significantly reduces expenses… allowing businesses to allocate resources more effectively,” Khandelwal noted.

As cost becomes a bigger factor for businesses, flex spaces offer clear financial benefits. “Flex spaces allow companies to get high-quality workspaces with great amenities — all without the big upfront investment,” said Amal Mishra, founder and CEO of a managed office space provider. This model allows companies to scale up or down easily, which is especially helpful for businesses navigating uncertain markets.

Leasing activity is hitting new highs. “In 2024, leasing by flex space operators stood at 12.7 million sq. ft., accounting for 19% of total office leasing across the top six cities,” shared Vimal Nadar, national director at Colliers India. This momentum continued into 2025, with Q1 alone a 22% year-over-year increase. Enterprises — especially in tech, BFSI, engineering, and consulting — now comprise 60–70% of total flex space demand.

Meanwhile, Global Capability Centres (GCCs) are emerging as major players in the sector. They’re turning to flex spaces for rapid setup, scalability, and cost control. “The biggest advantage of partnering with flex space operators like us is the turnkey solution we provide. Everything is ready from day one,” said Amit Ramani, CMD of a coworking brand. It’s managed under one roof, from workstations and meeting rooms to compliance and tech support.

Technology is pivotal in managing these spaces, and Grade A properties are in high demand due to their superior infrastructure, sustainability, and connectivity. “The flexible workspace sector in India’s Tier-I cities is experiencing unprecedented growth,” Ramani added. The trend is more than a temporary shift, fundamentally changing how organisations approach office space.

In total, flexible workspaces are a core part of corporate real estate planning in India. With Tier-I cities driving demand and Tier-II cities showing strong potential, the sector is poised for further expansion, reshaping where and how we work.