Flex Spaces Ignite India’s Office Market: 65% YoY Surge Led by Tech Powerhouses

Image Source: Economic Times

India’s office real estate sector is witnessing an unprecedented boom, with flexible workspaces emerging as the driving force. In Q2 2025, flex space leasing soared by 65% year-on-year, as technology companies continued to anchor demand and redefine workplace preferences.

Key Highlights

•⁠ ⁠Flex space leasing reached 4.3 million square feet in Q2 2025, setting a new benchmark for the segment. This surge was led by major deals in Mumbai, Hyderabad, Chennai, and Bengaluru, with operators like Smartworks, Tablespace, Incuspaze, WorkEZ, and Bhive closing significant transactions.

•⁠ ⁠The technology sector accounted for over 50% of total flex space occupancy across India’s top seven cities. Occupiers ranged from global IT services giants to domestic SaaS and fintech players, all seeking scalable, agile, and employee-centric workspace models.

•⁠ ⁠Notable transactions included Microsoft leasing 1,250 seats in Hyderabad, Concentrix securing 1,100 seats in Pune, and Fujitsu taking 800 seats in Hyderabad. In Chennai and Bengaluru, tech firms like Contus Tech and Cloud Odyssey also made substantial commitments to flexible workspaces.

•⁠ ⁠India’s flex space stock has now surpassed 60 million square feet, with operators expanding into Tier-2 cities and enhancing offerings through technology integration and space-as-a-service models.

•⁠ ⁠The broader office market also remained robust, with gross leasing volumes on track to surpass 90 million square feet in 2025. Bengaluru, Mumbai, and Hyderabad led the charge, reflecting strong occupier confidence and a resilient supply pipeline.

Outlook

•⁠ ⁠Industry experts anticipate flex spaces will continue to capture a rising share of total office absorption, propelled by the tech sector’s appetite for hybrid and managed workspace solutions.

•⁠ ⁠Institutional investors and developers are increasingly collaborating with flex operators, signaling a long-term shift toward flexible, future-ready office environments.

Sources: Economic Times, Colliers India, The Flex Insights, Moneycontrol

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