Flex spaces power India's office market with 65% yoy surge, tech sector drives over 50% of occupancy

Time of India

07-07-2025

Flexible workspaces are emerging as a key pillar of India's
commercial real estate
market, with strong demand across cities and sectors.
Leasing activity
in
flex spaces
touched 4.3 million square feet in Q2 2025, marking a 65% year-on-year rise with major players singing large floor spaces
In
Mumbai
, Smartworks leased 411,200 sq. ft. in TRIL-Phase I-Intellion Park, Navi Mumbai, one of the largest deals of the year. In Hyderabad, Tablespace leased 270,000 sq. ft. at Phoenix Centaurus in the Off SBD region.
Chennai witnessed a significant deal with Incuspaze taking 250,500 sq. ft. in Olympia Crest on OMR Zone 1, while WorkEZ and Smartworks closed two deals in
Bengaluru
, leasing 175,000 sq. ft. and 159,000 sq. ft., respectively. Additionally, Bhive leased 143,900 sq. ft. in Whitefield, continuing the trend of strong local operator activity in the city.
'Tech firms continue to drive flex space demand, particularly in core and suburban business districts. These occupiers increasingly prefer managed and agile space models to support hybrid operations and cost management.,' said Sankey Prasad, chairman & managing director, Middle East & India at Colliers.
Experts says technology-driven companies have been central to this surge. Occupiers from tech-based firms—ranging from global IT services companies to domestic SaaS and fintech players—now account for over 50% of total flex space occupancy across India's top seven cities. The demand spans both startups and large enterprises seeking scalability, speed to market, and employee-centric workplace models.
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In the first half of 2025, Microsoft Corporation executed the largest flex space transaction, leasing approximately 1,250 seats at Phoenix Centaurus in Hyderabad's Off SBD micro-market Concentrix followed with a lease for 1,100 seats at Poloroche Business Avenue in Pune's Viman Nagar.
Fujitsu Limited secured 800 seats at Raheja Mindspace in Hyderabad's SBD, marking another significant deal in the city. Meanwhile, Rapid7 leased around 600 seats at Amar Tech Park in Pune's Baner Balewadi area through, highlighting Pune's growing appeal to tech occupiers seeking flexible workspace solutions.
In Chennai, Contus Tech leased 550 seats at Keppel One Paramount, operated, while Korcomptenz secured 255 seats at the SIFC Building in the CBD. Additionally, Cloud Odyssey opted for 326 seats at Manyata Tech Park in Bengaluru, and
Infosys Limited
took up 300 seats at Alphathum Tower in Noida.
According to experts, Bengaluru remains the largest flex space market, accounting for one-third of leasing activity in Q2 2025. However, leasing momentum is picking up in Mumbai, Hyderabad, and Chennai, with key transactions reflecting growing occupier confidence and supply readiness.This follows the all-time high quarterly demand witnessed in Q4 2024, reinforcing flex operators' growing influence on occupier preferences and office space planning, according to data from Colliers.
Flex space providers are no longer viewed as a stopgap or cost-saving solution. They have become mainstream players catering to diverse occupier segments, including multinationals. Their influence now extends beyond just leasing—they are actively shaping how space is designed, used, and managed.
'Our enterprise-first model ensures compliance, scalability, and speed, helping large global clients expand seamlessly. Many clients grow their footprint with us, validating our offering. As demand from GCCs rises, we are expanding across Tier 1 cities to meet growing enterprise needs,' said Kunal Mehra, President & Co-CEO, Table Space
Many corporates are also adopting the hub-and-spoke model, combining head offices with satellite flex sites to cater to distributed workforces. 'As workplace strategies evolve post-pandemic, flexible office spaces are no longer just about convenience—they are becoming a strategic asset class. We are working closely with landlords to co-create long-term space solutions, integrating flexibility particularly in newer micro-markets and redeveloped business parks,' said Urban Vault Founder Amal Mishra.
India's flex space stock has crossed 60 million sq. ft., with the top seven cities contributing the majority of this footprint. Operators are expanding into Tier-2 cities and strengthening their offerings with customised enterprise solutions, technology integration, and space-as-a-service models.
Given the current momentum and occupier appetite, industry experts believe flex spaces will account for a rising share of total office absorption in 2025 and beyond. Institutional investors and developers are also collaborating with operators to include managed space formats in their upcoming assets.