India’s flexible workspace market now commands 20% of commercial leasing, according to the Flex Office Market in India 2025 report by myHQ. Corporate adoption is rising fast, with enterprise deal sizes doubling since 2023. Bengaluru leads the supply, while Tier-2 expansion and GCC demand fuel the next growth wave.
Flex’s Fast Rise in India’s Commercial Real Estate
India’s flex office space sector has hit a significant milestone—capturing 20% of all commercial leasing activity, reveals the latest Flex Office Market in India 2025 report by myHQ by Anarock. The report highlights a clear shift in demand, with large enterprises and MNCs increasingly opting for flexible spaces once dominated by startups.
Enterprise-grade clients now account for 54.1% of market value, thanks to higher average deal sizes and a strong preference for Grade-A assets. “Corporate deal sizes have risen as organisations place greater value on speed, flexibility, and scalability,” said Utkarsh Kawatra, CEO & Co-Founder of myHQ. “Flex is redefining the future of work in India, driving cost efficiency, resilience, innovation, and inclusivity.”
Enterprises Outpace Startups in Value
Corporate and startup adoption has now reached near parity—36.3% and 37.5% respectively. But enterprises dominate in value terms, reflecting larger deal sizes and premium asset choices. The average corporate deal size has more than doubled, from 25 seats in 2023 to 53 in 2025. Meanwhile, startups have downsized, opting for smaller, more agile setups averaging 10 seats, down from 22.
The IT/ITeS sector continues to lead demand at over 40%, while BFSI adoption has jumped from 4.5% in 2023 to 10% in 2025. Early-stage adoption is also picking up across Life Sciences, Manufacturing, and Logistics—sectors that could unlock millions of square feet in flex demand with even modest shifts.
Bengaluru and NCR Dominate Supply
Bengaluru leads the nation with 31% of India’s total flex office stock, catering to enterprise clients in Outer Ring Road and Whitefield, startups in HSR and Koramangala, and premium clients in Central Bengaluru. Delhi-NCR follows with 26%, split across Gurugram (10%), Noida (8%), and Delhi (8%). Hyderabad, Pune, and Mumbai each contribute 12%, while Chennai adds 7%.
Corporate demand is evolving across both CBD corridors and emerging suburban clusters. The hub-and-spoke model is gaining ground, supporting expansion into Tier-2 cities—particularly as firms look to decentralise operations and offer hybrid work options closer to employee residences.
Growth Outlook: Tier-2, GCCs, and Beyond
The report projects continued enterprise-led growth, with over 120 new Global Capability Centres (GCCs) and 40,000 jobs expected to be added by 2026. myHQ, which currently manages over 1.5 million sq. ft. across 3,000+ partner spaces, is also preparing to tap into Tier-2 and Tier-3 demand through landlord partnerships and expansion of its platform network.
Founded in 2016 by Utkarsh Kawatra and Vinayak Agrawal, myHQ currently serves 2,000 enterprise clients and connects more than 5,000 landlords across 10+ cities. Its growing scale reflects a broader shift: flex is no longer an alternative—it’s becoming a core strategy for future-ready occupiers.
As the lines between fixed and flexible offices continue to blur, India’s flex market is proving central to how companies think about cost, agility, and employee experience in a post-pandemic world.
