India's office market changes: 3 in 4 searches are now for coworking, not traditional offices
India's office market is undergoing a structural transformation, with businesses increasingly choosing flexible workspaces over traditional office leases. A new myHQ by ANAROCK report shows coworking now accounts for nearly three-fourths of all office-related searches, reflecting the rise of hybrid work and demand for agile workplace solutions.
- Jul 31, 2026,
- Updated Jul 31, 2026 7:35 AM IST
India's commercial real estate market is witnessing a fundamental shift as businesses increasingly move away from traditional office leases in favour of flexible workspaces. A new report by myHQ by ANAROCK reveals that nearly three out of every four office-related searches are now for coworking spaces, signalling that flexibility, rather than long-term ownership or leasing, is becoming the defining feature of workplace strategy.
According to the report, 73% of office search demand in 2025 was for coworking spaces, with search volumes running five times higher than those for traditional office leasing. The findings suggest that while conventional offices continue to have a role, they are no longer the first choice for companies evaluating workspace options.
The report attributes the trend to changing workplace needs. Businesses are increasingly opting for flexible office solutions that allow them to expand quickly, reduce fixed real estate costs and accommodate hybrid work models without locking themselves into long-term leases.
Businesses want flexibility
One of the biggest takeaways from the report is that companies are no longer searching simply for "office space." Instead, they are looking for specific workspace solutions designed around operational needs.
Searches for meeting rooms have jumped 187% since 2022, while virtual office searches have grown 99%. Demand for day passes has also increased 20%, reflecting the growing popularity of pay-as-you-use workspaces among startups, freelancers, remote employees and distributed teams.
According to the report, nearly 90% of coworking search demand now comes from these three categories, suggesting that businesses increasingly value flexibility over permanently assigned office space.
MUST READ: India's homebuyers are going premium as residential launches hit record high in Q1 2026
Sustainability now key factor
The report also highlights sustainability as an increasingly important consideration in office selection.
It found that seven of the ten most-searched office parks are green-certified, accounting for 66.3% of total office search demand. Annual searches for green-certified office parks have reached 122,500, indicating that environmental credentials are becoming a mainstream requirement for occupiers rather than a niche preference.
For developers and landlords, the findings suggest that green certifications are evolving from a competitive advantage into a basic expectation among corporate tenants.
The 'managed office' paradox
Interestingly, the report points to a disconnect between what businesses want and the terminology they use.
Although demand for managed offices has increased 137% since 2022, the phrase "managed office" remains relatively unpopular among search users. Search volumes are still around 20 times lower than coworking, indicating that customers understand the product but continue to search using broader terms such as coworking or furnished office.
The report says this presents both a branding challenge and an opportunity for workspace operators to better educate potential customers.
India's flex office story goes global
India's flexible workspace market is also attracting international attention.
Around 3% of office-space searches now originate from outside India, led by users in the United States, United Kingdom, UAE, Canada and Australia. According to the report, multinational companies, overseas investors, NRIs and businesses planning India entry are increasingly researching flexible workspace options even before establishing operations in the country.
The report argues that India's flex office opportunity is no longer purely domestic but is increasingly becoming part of global corporate expansion strategies.
MUST READ: DDA tweaks policy on alterations in flats after nearly two decades: What has changed
Hybrid work has become permanent
The study also challenges the perception that coworking was merely a post-pandemic phenomenon. It notes that demand for flexible workspaces is now 55% higher than post-2022 levels, suggesting that hybrid work has evolved into a permanent business model rather than a temporary adjustment.
Overall, the report points to a structural transformation in India's office market. As companies prioritise agility, sustainability and cost efficiency, commercial real estate demand is shifting from conventional office leases to flexible, purpose-driven workspace solutions. For developers, landlords and coworking operators alike, India's office market appears to be entering a new era where adaptability — not square footage — is the biggest differentiator.
ALSO READ: HDFC's former CEO Keki Mistry rejects 'Rent vs Buy' theory: Here's why he backs homeownership
India's commercial real estate market is witnessing a fundamental shift as businesses increasingly move away from traditional office leases in favour of flexible workspaces. A new report by myHQ by ANAROCK reveals that nearly three out of every four office-related searches are now for coworking spaces, signalling that flexibility, rather than long-term ownership or leasing, is becoming the defining feature of workplace strategy.
According to the report, 73% of office search demand in 2025 was for coworking spaces, with search volumes running five times higher than those for traditional office leasing. The findings suggest that while conventional offices continue to have a role, they are no longer the first choice for companies evaluating workspace options.
The report attributes the trend to changing workplace needs. Businesses are increasingly opting for flexible office solutions that allow them to expand quickly, reduce fixed real estate costs and accommodate hybrid work models without locking themselves into long-term leases.
Businesses want flexibility
One of the biggest takeaways from the report is that companies are no longer searching simply for "office space." Instead, they are looking for specific workspace solutions designed around operational needs.
Searches for meeting rooms have jumped 187% since 2022, while virtual office searches have grown 99%. Demand for day passes has also increased 20%, reflecting the growing popularity of pay-as-you-use workspaces among startups, freelancers, remote employees and distributed teams.
According to the report, nearly 90% of coworking search demand now comes from these three categories, suggesting that businesses increasingly value flexibility over permanently assigned office space.
MUST READ: India's homebuyers are going premium as residential launches hit record high in Q1 2026
Sustainability now key factor
The report also highlights sustainability as an increasingly important consideration in office selection.
It found that seven of the ten most-searched office parks are green-certified, accounting for 66.3% of total office search demand. Annual searches for green-certified office parks have reached 122,500, indicating that environmental credentials are becoming a mainstream requirement for occupiers rather than a niche preference.
For developers and landlords, the findings suggest that green certifications are evolving from a competitive advantage into a basic expectation among corporate tenants.
The 'managed office' paradox
Interestingly, the report points to a disconnect between what businesses want and the terminology they use.
Although demand for managed offices has increased 137% since 2022, the phrase "managed office" remains relatively unpopular among search users. Search volumes are still around 20 times lower than coworking, indicating that customers understand the product but continue to search using broader terms such as coworking or furnished office.
The report says this presents both a branding challenge and an opportunity for workspace operators to better educate potential customers.
India's flex office story goes global
India's flexible workspace market is also attracting international attention.
Around 3% of office-space searches now originate from outside India, led by users in the United States, United Kingdom, UAE, Canada and Australia. According to the report, multinational companies, overseas investors, NRIs and businesses planning India entry are increasingly researching flexible workspace options even before establishing operations in the country.
The report argues that India's flex office opportunity is no longer purely domestic but is increasingly becoming part of global corporate expansion strategies.
MUST READ: DDA tweaks policy on alterations in flats after nearly two decades: What has changed
Hybrid work has become permanent
The study also challenges the perception that coworking was merely a post-pandemic phenomenon. It notes that demand for flexible workspaces is now 55% higher than post-2022 levels, suggesting that hybrid work has evolved into a permanent business model rather than a temporary adjustment.
Overall, the report points to a structural transformation in India's office market. As companies prioritise agility, sustainability and cost efficiency, commercial real estate demand is shifting from conventional office leases to flexible, purpose-driven workspace solutions. For developers, landlords and coworking operators alike, India's office market appears to be entering a new era where adaptability — not square footage — is the biggest differentiator.
ALSO READ: HDFC's former CEO Keki Mistry rejects 'Rent vs Buy' theory: Here's why he backs homeownership