India’s flexible workspace sector reached a significant milestone in 2024, recording a gross leasing volume (GLV) of 12.4 million square feet (MSF), marking a 57.5% year-on-year (YoY) growth, according to Business World.
This increase reflects a growing preference for cost-effective and flexible office solutions across major cities. Flexible workspaces, including coworking spaces and managed offices, now make up 14% of India’s total office leasing activity.
Bengaluru led the sector with 3.4 MSF of leasing volume, nearly doubling its 2023 figures. Mumbai experienced the fastest growth, tripling its leasing volume to 1.9 MSF. Other cities like Delhi NCR, Hyderabad, and Pune also saw significant increases, establishing them as key hubs for flexible workspaces.
A major factor in this growth has been the rise in flex seat leasing, where companies lease office space from flexible operators. In 2024, around 224,000 seats were leased, a 44% increase from the previous year.
Bengaluru accounted for nearly 30% of these leased seats, with Pune, Delhi NCR, and Mumbai following closely behind.
The demand for flexible workspaces is driven by a range of industries, including start-ups, domestic firms, and multinational corporations. The IT-BPM sector led the way in flex seat leasing, followed by engineering and manufacturing, with the BFSI and professional services sectors also contributing.
The increasing adoption of flexible office solutions, such as the “Core+Flex” strategy, where companies combine traditional offices with managed spaces, is expected to continue driving growth. As businesses seek customizable, technology-driven office solutions, flexible workspaces are becoming an integral part of India’s office market.
