In the first half of 2025, tech companies drove nearly 50% of India’s flex space demand, with Bengaluru and Hyderabad leading the charge. Colliers reports that over 10 million sq ft has been leased by tech occupiers, highlighting the sector’s need for agility, access to talent, and cost-effective hubs in a hybrid work era.
India’s flexible workspace market is undergoing a significant shift in demand, primarily driven by the country’s technology sector. In the first half of 2025, tech companies accounted for nearly half of the total flex space leasing, signalling a strong preference for agility and access to distributed talent amid the ongoing hybrid work revolution.
According to real estate consultancy Colliers, the tech industry leased more than 10 million square feet across India’s top seven cities, representing 40% of conventional office demand during the same period. This massive uptake reflects a structural trend where traditional IT firms and global tech giants alike are balancing operational efficiency with flexible, employee-centric workspace strategies.
“India is a powerhouse of tech talent and a key player in the global innovation ecosystem,” noted Arpit Mehrotra, Managing Director, Office Services, India, Colliers. He emphasised the role of India’s skilled workforce and robust infrastructure in attracting tech occupiers not just to Tier I cities, but also to emerging urban centres.
Bengaluru and Hyderabad continue to anchor this trend, together accounting for nearly 50% of tech-driven office leasing. With deep talent pools, advanced IT ecosystems, and relatively lower real estate and payroll costs, both cities remain the go-to markets for expanding tech operations.
Flexible workspaces have become the preferred choice for companies seeking to adapt to post-pandemic work models. These setups allow employees to choose how and where they work, from collaborative hubs to quiet zones, based on the task at hand. This freedom not only supports productivity but also helps employers attract and retain top talent in a competitive job market.
The growing dominance of flex spaces also speaks to the broader transformation underway in the Indian office landscape. For tech companies, they are no longer just a stopgap or cost-saving solution—they are now integral to long-term workspace strategy.
As hybrid work continues to evolve, the tech sector’s appetite for flexibility, scalability, and access to top talent will likely drive demand well into the next phase of office space innovation.
Leave a Comment
You must be logged in to post a comment.