India’s flex office space segment is expected to cross 100 million sq ft by 2027, up from 72.3 million sq ft in 2025, according to Colliers’ report Flex India: Pioneering the Future of Work. Bengaluru remains the largest flex market with a 31% share of total stock, while Pune has the highest penetration at 11.5%. Global Capability Centres (GCCs) are also emerging as one of the most influential occupier groups in the flex ecosystem.
The share of flex spaces in the overall office stock is also set to strengthen, with flex penetration likely to rise from 8.5% in 2025 to 10.5% by 2027, supported by sustained operator expansion, it said.
“This growth will be further fueled by strong enterprise demand, with average annual seat uptake projected to increase 25% over the next two years to around 200,000 seats, compared to 160,000 seats seen during 2024 and 2025,” Colliers said.
Bengaluru remains the largest flex market with a 31 per cent share of total stock, while Pune leads with the highest penetration at 11.5 per cent. Secondary Business Districts across Tier I cities continue to serve as the core hubs, accounting for more than half of flex uptake over the past five years due to their strong connectivity, talent concentration, and high-quality developments.
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The report stated that flex operators are accelerating their expansion into Tier II cities, such as Ahmedabad, Chandigarh, Kochi, Coimbatore, and Jaipur. Rentals in these markets remain 30–35 per cent lower than Tier I cities, offering occupiers an attractive cost advantage as they adopt hub-and-spoke and distributed workforce models. Colliers estimates that Tier II cities could account for 10–15 per cent of India’s flex stock by 2027.
The report highlighted accelerating enterprise adoption, operator-led expansion, and deeper integration of technology and sustainability as core factors reshaping the sector.
Technology and BFSI occupiers are expected to drive 60–65 per cent of the demand. Operators are increasingly offering fully managed, tech-enabled solutions designed around scalability, onboarding support, and compliance-ready infrastructure to meet this surge.
“India’s flex market is entering a pivotal era of expansion,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India. He observed that domestic enterprises and GCCs are deepening their adoption of flex as operators invest in next-generation workspaces that integrate PropTech and sustainable features.
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GCCs emerge as a major force
Global Capability Centres (GCCs) are becoming one of the most influential occupier groups in the flex ecosystem. In 2025, they accounted for 40–45 per cent of the estimated 160,000 enterprise seats taken up across the country. Their share is expected to rise further as they expand into high-value functions such as engineering, analytics, and AI-driven capabilities.
“GCCs have become one of the most prominent demand drivers of flex space, accounting for 40-45 per cent of the enterprise seat uptake. As they expand into higher-value functions such as R&D, engineering, analytics, and artificial intelligence, flex operators are responding with specialised value-added offerings, including onboarding support, compliance-ready infrastructure, fully managed services, and rapid deployment models. With PropTech-led efficiencies, enterprise-grade solutions and sustainability features becoming core to flex portfolios, GCCs are expected to deepen their flex adoption, contributing to nearly half of total enterprise demand over the next two years,” says Vimal Nadar, National Director and Head of Research, Colliers India.
Technology and BFSI drive the majority of enterprise flex demand
Enterprise occupiers continue to dominate India’s flex market, accounting for nearly 70 per cent of total flex seat demand. Average annual enterprise seat uptake has risen sharply, from about 50,000 seats in 2021 to nearly 160,000 seats across 2024 and 2025, driven primarily by technology and BFSI firms. Together, these two sectors contribute roughly 60–65 per cent of current enterprise demand.