Is India the Largest Flexible Office Market in Asia-Pacific?
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Synopsis
In a groundbreaking report, India has been recognized as the largest flexible workspace market in the Asia-Pacific region. With projections indicating continued growth, this trend reflects a significant shift in how businesses operate and adapt to changing demands. Explore the factors driving this transformation and what it means for the future of work in India.
Key Takeaways
- India is the largest flexible workspace market in APAC.
- Projected to reach 85 MSF by year-end and over 100 MSF by 2026.
- Demand for flex workspaces has increased nearly sixfold since 2020.
- International enterprises are driving the majority of the demand.
- Bengaluru holds 30% of the national inventory.
New Delhi, Sep 19 (NationPress) According to a recent report, India has emerged as the largest flexible workspace market in the Asia-Pacific (APAC) region, boasting 79.7 million square feet (MSF) of flexible office space across its top eight cities as of Q2 2025.
"This figure is projected to reach 85 MSF by the end of the year and is expected to exceed 100 MSF by 2026," stated Cushman and Wakefield in their report released on Friday.
This remarkable growth is paralleled by a significant rise in demand.
The report indicates that the demand for flexible workspaces has increased nearly sixfold since 2020, driven by businesses prioritizing shorter commitments, managed solutions, and strategies focused on speed to market.
In 2024, flexible office space represented 15 percent of all new office leasing, underscoring its acceptance as a mainstream option.
The expansion of operators in this space has also seen a sharp acceleration.
From 2022 to 2024, flexible workspace providers leased 33.5 MSF, translating to over 500,000 seats.
Annual take-up by operators has tripled over five years, jumping from 4.3 MSF in 2020 to 15.4 MSF in 2024, firmly establishing flexible workspaces as a crucial part of workplace solutions rather than merely an alternative, as highlighted in the report.
The narrative of flexibility and agility is shaping India’s flexible workspace landscape, a trend that is expected to gain momentum as companies actively seek office solutions that allow them to scale or adjust their workforce swiftly.
According to the report, a significant portion of this demand is driven by international enterprises, which accounted for 72 percent of flex seat uptake in 2024, while start-ups made up 28 percent.
The influx of Global Capability Centres and new companies entering the Indian market is further propelling this shift, reinforcing flexible workspaces as the preferred model for businesses aiming for speed, resilience, and growth in a dynamic environment.
The managed office/enterprise model now commands 70-80 percent of demand in the post-COVID landscape, significantly ahead of traditional coworking.
Most of this flexible workspace inventory remains concentrated in the top eight cities, with Bengaluru leading, holding 30 percent of the national flex inventory, followed by Delhi-NCR, Pune, and Hyderabad.
Bengaluru also leads in demand, constituting around one-third of annual enterprise transactions across the country.
Beyond these major metros, businesses are increasingly looking towards Tier-II cities like Chandigarh, Jaipur, Kochi, Trivandrum, Coimbatore, Visakhapatnam, and Bhubaneswar to tap into emerging talent pools and benefit from lower operational costs.
India's flexible workspace market is distinguished by its strength and maturity.
Achieving a perfect score of 100 on Cushman and Wakefield’s maturity index, India surpasses its global counterparts, including the United Kingdom (98 percent), France (97 percent), United States (81 percent), and both Japan and Singapore (77 percent) respectively, as noted in the report.
Point of View
It’s evident that India’s flexible workspace market is not just growing; it’s transforming the way businesses operate. The substantial demand from both international enterprises and startups showcases a shift towards a more agile workforce. This trend highlights the need for adaptability in a rapidly changing environment, making flexible workspaces a crucial part of our economic landscape.
NationPress
20/09/2025
Frequently Asked Questions
What is the current size of India's flexible workspace market?
As of Q2 2025, India's flexible workspace market stands at 79.7 million square feet.
What is the projected growth of this market?
The market is expected to reach 85 million square feet by the end of 2025 and surpass 100 million square feet by 2026.
Who is driving the demand for flexible workspaces?
The demand is primarily driven by international enterprises, accounting for 72% of flex seat absorption in 2024.
What cities are leading in flexible workspace inventory?
Bengaluru leads with 30% of the national flex inventory, followed by Delhi-NCR, Pune, and Hyderabad.
How does India compare to other countries in terms of flexible workspace maturity?
India scores a perfect 100 on the maturity index, outperforming countries like the UK, France, and the US.
