India’s flexible office space market has experienced significant growth over the past eight years, with annual transaction volumes soaring from 2.2 million sq ft in 2017 to 18.6 million sq ft in 2025 across the top eight cities, according to a report. This surge represents an 8.4 times increase, showcasing a compound annual growth rate of 30 per cent, surpassing the broader office market’s 9 per cent growth during the same period.
The report by Knight Frank India also revealed a notable rise in flex space penetration from 5 per cent in 2017 to 21 per cent in 2025, underscoring its increasing significance in India’s office landscape. The evolution of flexible workspaces from a startup-centric model to a fundamental enterprise real estate strategy has led to large corporates driving demand, accounting for 72 per cent of total flex space absorption.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, emphasized the sector’s transformation from a startup-focused trend to an integral part of enterprise real estate planning. Global Capability Centres (GCCs) were the top demand drivers, holding a 52 per cent share, followed by third-party IT firms at 26 per cent and India-facing businesses at 22 per cent, indicating flex spaces’ role in supporting expansion and distributed workforce strategies.
The Information Technology (IT) sector emerged as the largest occupier at 43 per cent, with Banking, Financial Services, and Insurance (BFSI) following at 25 per cent. Bengaluru stood out as the largest flex market, with 5.3 million sq ft absorption in 2025, while Pune led in penetration at 31 per cent. The report also pointed towards future growth driven by deeper enterprise integration, city-specific demand strategies, and the evolution of flex operators into comprehensive workspace partners.
