Flex Office Space Market Expands Rapidly

May Cross 100 Million Sq Ft by 2027: Colliers India

India’s flexible office space market is witnessing strong growth and is expected to cross 100 million sq ft by 2027, according to a recent report by Colliers India. Demand from enterprises and GCCs is driving this expansion. Currently, India’s flex office stock stands at 72.3 million sq ft. Bengaluru leads the market with a 31% share, followed by Pune at 11.5%. Flex space penetration within total office stock is projected to rise from 8.5% in 2025 to 10.5% by 2027.
Average annual seat absorption is expected to increase by 25%, reaching nearly 200,000 seats over the next two years, compared to 160,000 seats absorbed during 2024–25.

Flex operators are accelerating expansion in Tier-2 cities such as Ahmedabad, Chandigarh, Kochi, Coimbatore, and Jaipur, where rentals are 30–35% lower than Tier-1 cities. These locations support hub-and-spoke and distributed workforce models, offering cost advantages.

Colliers estimates that by 2027, Tier-2 cities could account for 10–15% of India’s flex office stock, with technology and BFSI sectors driving 60–65% of demand. Commenting on the trend, Arpit Mehrotra, Managing Director – Office Services, Colliers India, said the Indian flex market is entering a critical growth phase.