India's Leap Towards Sustainable & Innovative Workspace Design
- Industry News
- March 13, 2024

India’s flexible workspace sector is becoming a core part of corporate real estate, accounting for 27% of office leasing in H1 2026. Flex leasing has grown faster than traditional Grade A offices, while enterprises and GCCs increasingly choose managed workspaces to reduce upfront costs and scale faster.
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UrbanVault has expanded into Chennai with 1,00,000 sq ft of flexible workspace across three properties, taking its national portfolio beyond 3 million sq ft. The move comes amid strong sector growth, driven by enterprise demand and new workspace formats, with major operators posting higher revenues in Q1 FY27.
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Smartworks plans to invest ₹550-600 crore in FY27 across existing and upcoming centres as demand for managed office space rises. The company has already signed over 3.5 million sq. ft. of future space. Strong enterprise demand, growing GCC business and long-term contracts support its expansion strategy.
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India’s flexible office inventory has crossed 110 million sq. ft., more than tripling since 2020. GCCs drove 44% of Q1 2026 office leasing, while 67% plan to increase flex adoption. Bengaluru leads the market, and AI could create another 79 million sq. ft. of office demand by 2030.
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Foreign BFSI companies drove India’s GCC office leasing to a record 7.32 million sq. ft. in H1 2026. The sector accounted for 36% of total GCC leasing across eight cities. Meanwhile, demand in IT-ITeS and manufacturing moderated, highlighting a broader shift toward a more diversified GCC ecosystem.
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PepsiCo will end insurance coverage for weight-loss drugs from October as employers focus on controlling healthcare costs. At the same time, India’s office market reached a record 24.6 million sq. ft. of leasing. Strong expansion plans and rising occupier demand point to continued momentum for developers and REITs.
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