India’s Flex Office Market to Reach $9–10 Billion by 2028 on GCC Demand

India’s office space market is undergoing a fundamental transformation. What was once dominated by long-term leases and traditional corporate campuses is rapidly shifting toward flexible and managed workspace models. At the centre of this evolution is the growing influence of Global Capability Centres (GCCs), which are redefining how enterprises consume India’s office space.

According to a recent industry report, India’s flex office space segment is projected to expand to $9–10 billion by 2028, nearly tripling from its current size. This growth is being driven primarily by GCC-led demand, as multinational companies increasingly favour scalable, experience-driven workplaces over rigid leasing structures.

What the Latest Report Reveals

The report, jointly released by Smartworks Coworking Spaces and UnearthIQ, highlights a decisive shift in occupier strategy across India’s office space ecosystem.

It estimates that GCCs alone will generate 160–200 million sq ft of office demand by 2030. Of this, flexible and managed workspaces could capture 65–80 million sq ft, accounting for nearly half of incremental demand over the next several years.

This signals a clear departure from conventional leasing models, with enterprises prioritising agility, faster market entry, and lower upfront capital commitments.

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Understanding GCC Demand in India’s Office Space Landscape

GCCs, also referred to as global in-house centres or captive,s are offshore units set up by multinational corporations to handle core business functions such as technology development, analytics, finance, and operations. India has emerged as the world’s leading GCC destination due to its skilled workforce, cost competitiveness, and expanding digital infrastructure.

Currently, India hosts over 1,850 GCCs, employing nearly 2.2 million professionals. These centres are adding an estimated 80,000–120,000 seats annually, creating a sustained and predictable demand pipeline for India’s office space market.

Unlike traditional corporate occupiers, GCCs typically scale in phases. This incremental expansion aligns naturally with flex and managed office formats, allowing companies to add or reduce capacity without long-term real estate risk.

Why Flex and Managed Offices Are Gaining Ground

One of the strongest drivers behind the rise of flex offices is the shift toward asset-light, opex-led real estate strategies. Enterprises today are reluctant to lock capital into long-term leases, especially amid evolving hybrid work models and uncertain global economic conditions.

Flex office spaces offer:

• Fully furnished, ready-to-occupy workplaces
• Shorter lease tenures
• Integrated facility management
• Technology-enabled operations

For GCCs entering new cities or experimenting with satellite locations, these features significantly reduce go-to-market timelines. As a result, flex spaces are no longer seen as interim solutions but as a core component of India’s office space strategy.

Tier-1 and Tier-2 Cities: The New Growth Equation

Another defining trend reshaping India’s office space market is the geographic spread of demand. While Bengaluru, Hyderabad, Pune, and NCR remain dominant GCC hubs, companies are increasingly exploring Tier-2 cities such as Coimbatore, Kochi, Indore, Jaipur, and Ahmedabad.

This expansion is driven by:

• Access to untapped talent pools
• Lower real estate and operating costs
• Improved urban infrastructure and connectivity

Flex and managed offices play a crucial role in enabling this decentralisation. For many enterprises, entering a Tier-2 city through a flexible workspace mitigates location risk while maintaining operational efficiency.

Market Size Outlook for India’s Office Space Sector

Beyond flex offices, the broader commercial real estate landscape in India is also on a strong growth trajectory. India’s commercial real estate market, currently valued at $50–60 billion, is expected to expand to $120–130 billion by 2030.

Office assets account for nearly half of this valuation, with India’s office space segment estimated at $22–26 billion today. Growth drivers include:

• Continued GCC and IT/ITeS expansion
• Rising institutional investment
• Increased demand for Grade A offices
• Policy initiatives supporting transparency and formalisation

Within this evolving market, branded flex offices have emerged as the fastest-growing sub-segment, outpacing traditional leasing models in absorption growth.

The Rise of Branded Flex Office Operators

The report underscores that flex offices are no longer just about desks and meeting rooms. Leading operators are now offering experience-first workplaces, integrating technology, wellness, and community-building into office design.

As Harsh Binani of Smartworks notes, GCCs today are seeking intelligent, scalable environments that support productivity and employee engagement. This has elevated flex operators from space providers to strategic partners within India’s office space ecosystem.

Similarly, UnearthIQ highlights that operators capable of combining scale, data intelligence, and multi-city reach will define the next phase of GCC-driven growth.

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What This Means for Developers and Investors

For developers and institutional investors, the rapid expansion of flex offices presents both an opportunity and a strategic inflection point. Traditional build-and-lease models are giving way to operator-led leasing partnerships, where revenue stability is driven by long-term enterprise demand rather than fixed leases.

Assets designed with flexibility in mind larger floor plates, adaptable layouts, and integrated services are increasingly preferred. As flex penetration rises, India’s office space assets that can accommodate managed office operators are likely to see higher occupancy and valuation resilience.

Conclusion

The projection of India’s flex office space segment reaching $9–10 billion by 2028 reflects more than just market expansion it signals a redefinition of how India’s office space is planned, leased, and consumed.

With GCCs driving sustained demand, Tier-2 cities emerging as viable office destinations, and enterprises prioritising flexibility over ownership, flex offices are becoming a permanent pillar of India’s commercial real estate landscape. For occupiers, developers, and investors alike, adapting to this shift will be critical to staying relevant in the next phase of growth.