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

India’s flexible workspace market is projected to grow 16–18% to 140–145 million sq ft, driven by GCCs, corporates, and startups. With rising occupancy, stable profitability, and strong pre-leasing activity, flex operators are becoming a key driver of office demand despite global and technology-related risks.
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India’s real estate sector remains resilient, supported by infrastructure investments of ₹23–24 lakh crore. While residential demand stabilises, commercial growth is led by flexible workspaces and GCCs. Smartworks’ 10 million sq. ft milestone highlights enterprise shift to managed offices, even as global risks, inflation, and execution challenges shape the sector’s near-term outlook.
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Kolkata’s office market recorded a 125% year-on-year jump in Q1 2026 transactions, driven by flexible workspace demand. Rents rose 15%, vacancy declined sharply, and enterprises dominated leasing. Salt Lake and New Town emerged as key hubs, signalling strong momentum and growing relevance in India’s evolving commercial real estate landscape.
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India’s Grade A office market is poised for strong growth in 2026, fueled by GCC expansion, flexible workspace adoption, and REIT-led institutionalisation. Bengaluru leads activity, while sustainability and tech-enabled offices dominate demand. Flex spaces could account for up to 25% of leasing, reshaping occupier strategies nationwide.
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Industry leaders at the Realty+ Flex Spaces and PropTech Conclaves 2026 highlighted how hybrid work, enterprise demand, and data-led platforms are transforming commercial real estate. Flex workspaces are emerging as core assets, while PropTech ecosystems are improving efficiency, transparency, and scalability across India’s rapidly evolving office market.
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From April to June 2025, the IT and IT-enabled services sectors took up half of all the new office spaces rented in India. At the same time, companies that offer flexible workspaces accounted for 14% of the total space taken up, showing significant growth in both areas compared to the previous quarter.
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