Flex Office Space India: Dominance of ‘Flex Space’ in India’s Office Market; 8 times increase in demand in 8 years, Bengaluru-Pune leading

• ‘Flex space’ dominates India’s office market
• 8 times increase in demand in 8 years
• Bengaluru-Pune lead!

Mumbai, April 1, 2026: According to Knight Frank India’s “Flex Space Occupier Intelligence” report, the flexible workspace market in India has grown significantly. Demand from 2.2 million square feet in 2017 is expected to reach 18.6 million square feet in 2025, an 8.4-fold increase. It has recorded a CAGR of 30% over a period of 8 years.

Key Points:

• Total leasing of flex space in 2025 is 18.6 million square feet
• Large companies account for 72% of the flex space
• IT sector has the highest share of 43%
• Increase in flex space penetration from 5% (2017) to 21% (2025).

Increasing use by large companies:

Earlier, startups and small businesses used flex space. However, now the use of large companies and multinational companies has increased significantly. This trend is increasing due to quick setup, flexibility and cost efficiency.

Limited share of startups

Startups account for only 10% of the flex space, including mostly early-stage companies.

Role of GCC and IT Companies:

• Global Capability Centers (GCCs) – 52%
• Third-party IT companies – 26%
• Companies in India – 22%

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Share by Industry:

• IT – 43%
• BFSI – 25%
• Other Services – 24%
• Manufacturing – 8%

Status by Cities:

• Bengaluru largest market (5.3 mn sq ft)
• Highest penetration in Pune (31%)
• MMR (Mumbai Metropolitan Area) – 2.7 mn sq ft (28%)

Shishir Baijal, CMD, Knight Frank India said, “Flex space is no longer limited to startups but has become an important part of the real estate strategy of large companies. It will be increasingly used for GCC expansion, distributed workforce and cost efficiency in the coming years.” Flex space has become an important factor in the office market in India, and the sector is likely to grow even faster in the coming years.

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