“The best way to predict the future is to create it.” – Peter Drucker

The Indian office market is on the brink of a major transformation. Traditional, long-term office leases are no longer the default. Instead, businesses embrace flexible, tech-enabled, and experience-driven workspaces that align with evolving workforce expectations.

By the second half of 2024, the flex industry hit a milestone—one in five office leases was flexible. This shift is not just a trend but the future of commercial real estate.

The numbers reinforce this shift:

• Gross leasing surged to 89 million square feet (MSF) in 2024, a 19% increase from the previous year.
• Flex space leasing jumped to 12.5 MSF, nearly doubling from 7 MSF in 2023.
• Global Capability Centers (GCCs) led the way, driving 37% of total office leasing, and securing India’s position as a global leader in office space absorption.

With institutional investments, potential IPOs, and rapid technological advancements, the flex industry is evolving at an unprecedented pace. Industry leaders from Qdesq, The Instant Group, Incuspaze, JLL, and CorporateEdge weigh in on what’s next for 2025.

Key Trends Driving the Future of Flex Workspaces

1. Flex Workspaces to Command 20-21% of India’s Office Market

The flex market is set to expand aggressively, growing at a 15-20% CAGR. By 2025, flexible workspaces will make up 20-21% of India’s total office stock, with projections to surpass 100 MSF by 2026. This growth is driven by metro cities and Tier-2 and Tier-3 hubs, such as Indore, Chandigarh, Surat, and Lucknow, emerging as flex space hotspots.

“The flexible workspace industry in India is at an inflection point, poised to account for over 20% of the total office space market by 2025.”

— Paras Arora, Founder & CEO, Qdesq

2. The Workplace Becomes an Experience, Not Just a Space

Workspaces are no longer just places to work; they are becoming productivity and engagement hubs. To attract and retain talent, the modern office must deliver curated experiences, premium services, and technology-driven flexibility.

“Our marketplace platform enables businesses and employees to achieve a great workday by offering choice, cost transparency, and collaboration.”

— Tim Rodber, CEO, The Instant Group

3. Managed Offices: The Preferred Choice for Enterprises

Corporations, especially those with 200+ employees, are increasingly opting for managed office solutions. Businesses are looking for turnkey, customised spaces that offer flexibility without the burden of long-term leases or operational overheads.

“Enterprises will favour managed office solutions for scalability, cost efficiency, and superior employee experience.”

— Mona Shukla, Founder & CEO, CorporateEdge

4. Grade-A Offices and Suburban Expansion to Dominate

India is set to lead the Asia-Pacific region in office space absorption in 2025. While Grade-A workspaces in prime locations will continue to be in high demand, companies are also expanding into suburban and secondary markets to improve accessibility and employee convenience.

“Demand for Grade-A workspaces and suburban expansion will define India’s flex market in 2025, shaping future growth.”

— Sanjay Choudhary, Co-Founder & CEO, Incuspaze

5. The Rise of Flex Market Consolidation and IPOs

The next 18-24 months will be a defining period for the industry. The market is expected to witness mergers, acquisitions, and at least 2-3 major coworking IPOs. With leading operators scaling aggressively, investors are eyeing the sector’s long-term profitability and expansion potential.

“With consolidation shaping the market and IPOs on the horizon, the next two years promise to be transformative for the sector.”

— Paras Arora, Qdesq

6. AI, Tech, and Data Will Redefine Future Workspaces

Technology is reshaping how businesses use office spaces. AI-powered booking systems, IoT-enabled energy optimisation, and blockchain-based lease management are set to make workspaces more efficient, data-driven, and user-friendly.

“The need for agility will continue to gain momentum, creating significant opportunities for the Flex Industry.”

— Tim Rodber, The Instant Group

7. The Future of Work is Flexible

As businesses prioritise agility, sustainability, and tech-driven efficiency, flexible workspaces are no longer just an option—they are necessary.

“India’s economic expansion will drive flex space demand, offering businesses instant, scalable solutions.”

— Jeremy Sheldon, Head of Leasing & Client Partnerships, APAC, JLL

Final Words

This shift is evident, with major real estate players making significant moves. CBRE’s acquisition of Industrious and Yardi’s investment in Deskpass and Hubble signal the growing recognition of flex spaces as the future of commercial real estate.