Global demand for flexible workspace grew 24% in H1 2025, driven by hybrid adoption and enterprise expansion. APAC saw exceptional momentum, with Nagpur and Gurugram recording the strongest rise in workspace requirements. Higher yields, improved employee wellbeing, and scalable corporate demand are now redefining the flex market across the region.
Flexible work is no longer an experimental chapter in corporate real estate. It has become one of the most predictable, scalable and data-backed shifts within workplace strategy. The Instant Group’s Global Flexible Workspace Report (H1 2025) captures this transition with striking clarity: global demand for flex rose 24% compared to the first half of 2024, signalling that hybrid work is now the default infrastructure rather than a temporary bridge.
But the headline story lies deeper within APAC. Two Indian cities—Nagpur and Gurugram—sit at the top of the region’s growth charts. Nagpur recorded a 170% increase in average workspace requirements, while Gurugram saw a 102% increase. These numbers don’t simply show local demand; they show a structural reconfiguration of India’s corporate footprint.
Flex Becomes a Mature, Mainstream Global Strategy
The report reinforces something most CRE leaders have long sensed: flexibility is now embedded in how organisations operate.
- 74% of companies worldwide now run on some form of flexible or hybrid model.
- Only 18% still follow an office-first standard.
The reasons are remarkably consistent across regions.
- 63.4% cite hybrid work adoption as the primary driver of change.
- 54.9% emphasise the need for flexible leasing and space options in volatile markets.
- 45.7% still view cost optimisation as a major lever.
In other words, flex supports strategic goals—not reacts to them. It has become the backbone of business continuity, talent mobility and real estate agility.
APAC’s Enterprise Shift Is Reshaping Demand Patterns
APAC has traditionally been cautious in adopting new workspace models. That caution has now given way to decisive enterprise-scale adoption.
According to the report:
- 68% of APAC enterprises with 10,000+ employees have adopted flexible or hybrid work.
- Requirements for 26+ desk configurations are up 25% versus 2020.
This reflects a new reality: large corporations are restructuring how and where people work, decentralising operations, and treating flex as a long-horizon investment rather than a short-term overflow solution.
Within this landscape, five APAC cities stand out for the sharpest rise in average workspace requirements:
- Nagpur +170%
- Hanoi +153%
- Gurugram +102%
- Canberra +86%
- Kathmandu +62%
Nagpur’s leap underscores the growing influence of India’s Tier-2 markets on corporate location decisions, while Gurugram’s surge reaffirms its status as a high-performance enterprise corridor competing directly with global hubs.
Flex Outperforms Traditional Offices on Returns
The data also challenges one of the most persistent myths in commercial real estate: that flex lowers yield. In fact, the opposite is occurring.
In mature markets—London, New York—flex delivers 2 to 2.5x the revenue per square foot compared to traditional leases. APAC goes even further:
- Sydney: 2.9x
- Melbourne: 4.1x
- Adelaide: 5.1x, the highest globally.
The implication is clear. For landlords, repositioning even a portion of a building into flexible workspace can unlock materially higher returns and reduce lease-up timelines.
Tim Rodber, CEO of The Instant Group, emphasises another point: rising demand in smaller cities is becoming a “major investment opportunity” for owners looking to convert underutilised buildings into revenue-generating flex assets.
Flex Improves Wellbeing and Performance—And the Data Is Unambiguous
Real estate decisions today sit at the intersection of cost, experience and productivity. Instant’s survey data highlights how strongly flex contributes to people’s outcomes:
- 84% of employees in hybrid models report better mental health.
- 82% say their physical health has improved.
- Only 62% report similar benefits in office-first environments.
- 56.3% of flex workers rate their performance as excellent, compared to 35.6% in traditional settings.
This reinforces what HR and workplace leads increasingly acknowledge: flexible work is not just a space decision. It influences how people feel, how well they work, and how long they stay.
A Turning Point for APAC’s Workplace Evolution
The data reveals a region accelerating faster than expected. Enterprise adoption is rising, Tier-2 and Tier-3 cities are becoming active workspace markets, and landlords are seeing stronger yields from flex than from traditional leases. For India, the spotlight on Nagpur and Gurugram marks a meaningful shift in how the country’s corporate ecosystem is expanding—beyond metros, and toward value-efficient, talent-rich markets.
If the last decade was about exploring hybrid work, the next one will be about operationalising it at scale. And APAC—especially India—is no longer catching up. It is setting the pace.
