India emerges as global leader in flex office market, ahead of UK, US

Since 2020, flex demand has risen nearly six-fold, fuelled by occupiers prioritising shorter commitments, managed solutions and speed-to-market strategies.

The flex segment is expected to grow steadily over the next one-two years, driven by rising demand for managed office solutions, with occupiers prioritising flexibility as a key factor.

In 2024 alone, flexible space accounted for 15 percent of new office leasing. Flex stock is expected to surpass 100 msf by 2026, as operators expand aggressively to cater to growing enterprise demand.

More than five lakh seats have been in past three years and around 33.5 msf space leased between 2022 and 2024.

In 2024, the enterprise leasing recorded a 51.3 percent year on year increase, reflecting continued occupier preference for managed office solutions. Annual uptake by operators has tripled in five years, from 4.3 msf in 2020 to 15.4 msf in 2024.

With a significant surge in global capability centres (GCCs) and other new companies entering India, the focus is shifting towards immediate, effective and flexible solutions, which, in turn, has given a fillip to the enterprise demand for flex spaces, the report said.

Bengaluru leads with 30 percent of total flex inventory, reflecting its strong appeal among enterprises, followed by Delhi-NCR, Mumbai and Hyderabad.

Bengaluru also leads the demand, accounting for an average of one-third of all annual enterprise transactions in the country.

Flex operators are also adopting cross-border models. Smartworks, for instance, has leased centres in Singapore to ensure seamless workspace continuity, as its clients expand internationally.

Neetish Sarda, Founder and MD, Smartworks said that India’s commercial office stock is expanding at an unprecedented pace, with flexible workspaces becoming integral to modern enterprise culture.

"The sector has grown at a remarkable 23–24 percent CAGR between 2020 and 2024, underscoring its transformation from an alternative to a mainstream strategy for enterprises. This momentum, fuelled by corporates adopting Core + Flex models, reflects the need for capital efficiency, workplace agility, and sustainability without compromising the employee experience," he said.

India leads on market maturity

India stands out for the strength and maturity of its flexible workspace market. Scoring a perfect 100 on Cushman & Wakefield’s maturity index, India has outpaced its global peers with well-established office markets, including the UK at 98 percent, France at 97 percent, the USs at 81 percent, and both Japan and Singapore at 77 percent respectively.

These figures reflect the combination of scale, operator diversity and innovative agreement structures that are reshaping occupier strategies in India.

The maturity score was calculated by assessing industry metrics that collectively gauge the depth and development of the sector.

India’s cost advantage further strengthens its position as fit-out costs in top cities such as Mumbai, Delhi, and Bengaluru average $75 per sq ft, among the lowest globally.

Major global markets often see fit-out costs exceed $150 per sq ft, excluding furniture, fixtures, technology, and other costs which can add another 10–40 percent premium to the total.

This cost efficiency is a critical driver for global occupiers choosing India as a growth hub, the report said.