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India’s flexible office space market is entering a new growth phase as more corporates embrace agile work models, according to the Flex Office Market in India 2025 Report by myHQ by Anarock. Once seen as the domain of start-ups and freelancers, flex offices are now central to corporate real estate strategies, accounting for nearly one-fifth of the country’s total commercial leasing activity.
The report shows that adoption by corporates and start-ups has reached near parity, a major milestone for the sector. The IT and IT-enabled services (IT/ITeS) segment leads demand with over 40% share, while the Banking, Financial Services, and Insurance (BFSI) sector has grown significantly, from just 4.5% in 2023 to 10% in 2025.
Corporate Demand Rising, Start-ups Streamlining
Corporate deal sizes have nearly doubled, with the average office requirement increasing from 25 seats in 2023 to 53 in 2025. This growth reflects a larger shift in how companies view workplace flexibility, as a strategic tool rather than a temporary fix. Meanwhile, start-ups have become more cost-conscious, reducing their average seat count from 22 to 10 as they focus on efficiency and hybrid operations.
Enterprises and multinational corporations now account for 36.3% of all flex workspace adoption, almost matching start-ups at 37.5%. In value terms, enterprise clients dominate, representing 54.1% of the total market. Their preference for Grade A assets, long-term partnerships, and customized solutions has lifted overall transaction sizes and stabilized demand.
City-Wise Landscape
Bengaluru continues to lead India’s flex office ecosystem, holding 31% of the national stock. The city’s Outer Ring Road (ORR) and Whitefield areas attract enterprise clients, while HSR Layout and Koramangala remain strongholds for start-ups. Central Bengaluru caters to premium occupiers looking for curated, high-end workspaces.
NCR follows closely with a 26% share, led by Gurugram at 10%, and Noida and Delhi at 8% each. Hyderabad, Pune, and Mumbai each contribute 12% of the country’s flex office inventory, while Chennai holds a steady 7%.
Interestingly, the report highlights that corporates are now exploring a “hub-and-spoke” model—retaining main offices in metro CBDs (central business districts) while expanding into tier-2 cities for satellite operations. This trend supports employee flexibility and allows companies to tap into regional talent pools without significant infrastructure costs.
What’s Driving the Growth
According to the report, enterprise clients are expected to make up more than 54% of the total flex office demand within the next two to three years. A big push is coming from India’s Global Capability Centres (GCCs), which are projected to add around 120 new centres and 40,000 jobs by 2026.
Emerging sectors such as Life Sciences, Manufacturing, and Logistics are also beginning to adopt flexible workspaces. Even a modest shift in these industries could unlock millions of square feet of new demand, broadening the market beyond its tech-heavy core.
Utkarsh Kawatra, CEO and Co-Founder of myHQ by Anarock, noted, “Corporate deal sizes have risen as organisations place greater value on speed, flexibility, and scalability. Flex is redefining the future of work in India, driving cost efficiency, resilience, innovation, and inclusivity.”
Founded in 2016 by Kawatra and Vinayak Agrawal, myHQ by Anarock connects over 5,000 landlords and 3,000 workspace partners across more than ten cities. It currently manages over 15 lakh square feet of workspace and serves 2,000 enterprise customers, with expansion plans targeting tier-2 and tier-3 cities.
As corporate adoption accelerates and new sectors join the fold, India’s flex office market is proving to be more than a passing trend—it’s becoming the backbone of the country’s evolving work culture.
