India’s flexible workspace sector is witnessing unprecedented growth, with operators recording a 57.5% year-on-year (YoY) increase in gross leasing volume (GLV), reaching 12.4 million square feet (MSF) in 2024, according to a report by Cushman & Wakefield. This surge reflects a rising demand for agile, cost-effective office solutions driven by hybrid work models and enterprise interest in managed offices.

With the sector now accounting for 14% of India’s total office leasing (89 MSF), flexible workspaces are emerging as a key player in commercial real estate. Bengaluru maintained its leadership, recording 3.4 MSF in leasing volume, nearly doubling last year’s figures. Mumbai saw a threefold YoY increase, reaching 1.9 MSF, signalling strong demand in India’s financial hub. Other major flex markets included Delhi NCR (2.3 MSF), Hyderabad (1.6 MSF), and Pune (1.6 MSF).

“The sector is witnessing historic highs in flex seats leased,” the report states, with 224,000 seats taken up in 2024, marking a 44% YoY rise from 156,000 seats in 2023. Bengaluru accounted for 29% (~64,000 seats) of this demand, followed by Pune (~39,000 seats), Delhi NCR (~38,000 seats), and Mumbai (~28,000 seats). These cities have solidified their positions as India’s top coworking hubs.

The IT-BPM sector dominated flex seat leasing, accounting for 48% of total seats, while engineering & manufacturing followed at 17%. The BFSI (10%) and professional services (6%) sectors also contributed significantly, showcasing the broad appeal of flexible office solutions across industries.

With businesses prioritizing scalability, agility, and cost-efficiency, India’s flexible workspace sector is set for continued expansion, reshaping the future of commercial real estate.