- 2024 witnesses record leasing by flexible workspace operators at 12.4 MSF; a 57.5% y-o-y growth
- Mumbai & Bengaluru record approximately 3x and 2x growth y-o-y respectively in flexible workspace leasing volume by operators
- 2.2 lakh seats leased by companies from flexible workspace operators in 2024, an increase of 44% over 2023; Bengaluru leads with 29% of seat leasing share
India’s flexible workspace sector is experiencing a robust growth, with flexible workspace operators registering an all-time high gross leasing volume (GLV) of 12.4 million sq. ft. (msf) in 2024, according to Cushman & Wakefield’s office data. This marks a 57.5% year-on-year (yoy) growth, reflecting the surging demand for agile, new age and cost-effective office solutions across key cities.
Flexible workspace sector includes business centres, coworking centres and managed offices. *
Gross leasing volume, which factors in all leasing activity in the market, including fresh take-up, renewal of contracted terms by corporates as well as pre-leasing, is an indication of overall market activity.
Flexible workspace sector’s gross leasing volume now accounts for 14% of India’s total office leasing (89 MSF), underscoring its growing significance in the commercial real estate landscape.
Among India’s top flexible workspace markets, Bengaluru led with 3.4 MSF of leasing volume, nearly doubling its previous year’s tally. Mumbai, meanwhile, recorded a 3x YoY growth in GLV, reaching 1.9 MSF, a testament to rising demand in India’s financial capital. Delhi NCR at 2.3 MSF GLV, Hyderabad at 1.6 MSF GLV, and Pune at 1.6 MSF GLV, also emerged as strong flexible workspace hubs.
According to the data, evolving business priorities, the need for flexibility, the shift toward hybrid work models and strong enterprise demand for managed office solutions fueled historic highs in flex seats leased. Office space leased by flexible workspace operators is subleased out to end occupiers in terms of seats; this is termed as flex seat leasing. The end occupiers include a combination of companies such as startups, domestic firms as well as multinational corporations. Flex seat leasing is a measure of demand in the flexible workspaces sector. Around 224,000 seats were leased in 2024 by end occupiers from flexible workspace operators, a 44% increase over 2023 (~156,000 seats). In terms of cities, Bengaluru again dominated with a 29% share (~64,000 seats) in total seats leased in the year and maintained its status as India’s leading flexible workspace market. Bengaluru was followed by Pune (~39,000 seats) Delhi NCR (~38,000 seats) and Mumbai (~28,000 seats) with shares of 18%, 17% and 12% respectively in total seats leased. These three cities saw remarkable growth, reinforcing the appeal of flexible workspaces across key business hubs.
The demand for flexible workspaces is being driven by a diverse mix of end occupiers across multiple industries. End occupiers belonging to the IT-BPM sector dominated flex seat leasing in 2024 with a share of around 48% in total seats leased followed by engineering & manufacturing occupiers with a share of 17%. BFSI and professional services occupiers contributed 10% and 6% of the seats leased in the year respectively.
Commenting on the rising prominence of flexible workspace in India’s office market, Ramita Arora, Managing Director Bengaluru & Head – Flex, India, Cushman & Wakefield, said: “With new companies (GCCs) entering the country and existing companies prioritizing operational flexibility, cost efficiency and end-to-end customization, demand for agile, dynamic, managed office solutions continues to surge. Flexible workspaces now account for 14% of India’s total office space demand, cementing their position as a mainstream real estate solution rather than just an alternative. This shift is fundamentally redefining the way India works.”
She went on to add, “With global enterprises increasingly adopting a ‘Core+Flex’ leasing strategy, combining traditional offices with managed workspaces, flexible workspace demand is expected to maintain its strong growth trajectory in 2025 and beyond. This will further drive uptake in Grade A/A+ assets across major cities by leading managed space operators. Best-in-class amenities, sustainability, and technology integration will continue to shape enterprise flexible workspaces demand in the near to medium term.”
* Further definitions on flexible workspace sector
- Business centres - Space leased by operators for small private offices accommodating maximum 50 persons and provision of basic services.
- Co-working centres - Space leased by operators for a mix of occupiers. End occupiers are freelancers, startups, SMEs as well as larger companies where all these occupiers generally share space. Seats leased by these occupiers can vary from small to large depending on requirement. Services offered are higher than business centres.
- Managed offices - Space is leased by operators only for a single client. End-to-end customized services is as per client requirement. Single cheque facility. Service brief is in the control of the client.