From startups to corporates: Bangalore dominates 100-mn-sq-Ft flex market, report finds

India’s flexible workspace industry is witnessing unprecedented growth, driven by strong corporate adoption and evolving workplace strategies, according to the Flex Office Market in India 2025 Report by myHQ by ANAROCK. The report reveals that India is poised to surpass other Asia-Pacific markets to become the region’s largest flexible office sector, with flexible workspaces now accounting for nearly 20% of all commercial leasing nationwide.

“Flexible workspace has moved from cost optimisation to a strategic essential,” said Utkarsh Kawatra, CEO and Co-Founder of myHQ by ANAROCK. “Corporate deal sizes have risen significantly this year from an average of around 63,000 sq. ft. in 2024, as organisations increasingly prioritise agility and scalability. As India crosses the 100-million-square-foot mark next year, we’re building the infrastructure for how modern India will work and grow.”

Bangalore leads the charge

Bangalore continues to dominate India’s flex market, accounting for 31% of total stock, buoyed by its mature tech ecosystem and diverse occupier base. Hyderabad, Pune, and Mumbai follow with 12% each, showcasing balanced growth across IT corridors and suburban hubs. The National Capital Region (26%) remains a major flex market, led by Gurugram (10%), with Noida and Delhi contributing 8% each. Chennai rounds out the top metros with 7% of total stock.

Corporate adoption

While startups still make up 37.5% of flex workspace adoption, corporates and multinationals are rapidly catching up, now comprising 36.3% of total demand and driving over half (54.1%) of market value. The IT/ITeS sector accounts for nearly 40% of all flex demand, underscoring a structural shift in workspace strategies. The BFSI sector has doubled its share since 2023 to 10%, as managed offices increasingly meet its compliance and security needs.

Average deal sizes have surged from 25 seats in 2023 to 53 in 2025, reflecting the shift from small-scale cost-saving to enterprise-scale strategic deployment. Corporate preferences for Grade A spaces have pushed up average ticket sizes by 30–50% compared to startup deals, significantly increasing their revenue impact.

Future growth

The next wave of expansion will be powered by enterprise clients and Global Capability Centres (GCCs). The report projects 120 new GCC centres and 40,000 additional flex jobs by 2026. Emerging hub-and-spoke models are driving flex workspace growth into Tier-2 cities and suburbs, aligning with corporate sustainability and employee well-being goals.

Sectors like life sciences, manufacturing, and logistics—long underrepresented in flex adoption—are beginning to show early momentum. Even a modest 5–10% shift in these industries could unlock millions of square feet of new demand.

“The flex office sector has transitioned from alternative to essential,” Kawatra added. “With corporates, startups, and GCCs all accelerating adoption, flex is redefining the future of work in India—driving not just cost efficiency, but resilience, innovation, and inclusivity.”