India’s flexible workspace sector is projected to expand significantly, with a total addressable market estimated to reach 240 million square feet (msf) and exceed INR 600 billion in value by March 2027, according to ICRA. This represents a compound annual growth rate (CAGR) of 21-22% from FY2025 to FY2027.
Flex office supply across six major cities—Bengaluru, Chennai, Delhi-NCR, Hyderabad, MMR, and Pune—is expected to rise to 125 msf by 2027, up from 80 msf in December 2024. This growth is fueled by increasing demand for short leases, lower capital costs, and hybrid work models.
The share of flex workspaces in commercial office leasing is set to more than double, reaching 12.5-13.5% by FY2027. Leasing activity remains strong, with 13 msf absorbed against 14 msf supplied in FY2024, reducing vacancy rates to 17%. Despite an influx of supply, vacancy rates are expected to stabilize at 15.5-16.5% by FY2027.
The sector is poised for further transformation, with five major IPOs in the pipeline aiming to raise over INR 7,000 crore. Dominated by IT/ITeS firms, engineering, and start-ups, flex spaces have become essential to India’s dynamic real estate landscape.
