Summary:

India's flexible office space market is expected to grow to 125 million square feet by March 2027, up from 80 million square feet in December 2024, reflecting a 21-22% CAGR. The segment, which saw one IPO in 2024, is set to see five more, raising Rs. 7,000 crore. Demand is driven by flexibility and reduced costs, with vacancy rates projected to fall to 15.5-16.5% by March 2027, despite significant new supply.

The flex workspace model debuted in India in 2017, with numerous operators opening additional centers in 2018 and 2019 to cater to startups and SMEs. The COVID-19 pandemic reduced occupancies, but hybrid work models revived the segment in 2023-2024. By December 2024, over 450 operators had more than 2,000 operational centers. Bengaluru leads the market with 32%, driven by strong IT/ITeS, engineering, and startup demand, which accounted for 67% of 2024 leasing.

Source: IBEF

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