Flexible workspaces gain ground

Hyderabad is among the top three cities driving demand for flexible workspaces.

Property Pulse

Co-working operators leased a record 8.6 million sq ft of office space across India's seven largest cities during the first half of 2026, underscoring the growing acceptance of flexible workspaces among corporates, according to a report by Colliers India. The leasing volume marks a 32 per cent increase over the 6.5 million sq ft absorbed during the corresponding period last year. Co-working operators accounted for 24 per cent of the country's total gross office leasing during January-June 2026.

Hyderabad continued to be one of the key markets driving this growth. Along with Bengaluru and Delhi-NCR, the city accounted for nearly two-thirds of the office space leased by flexible workspace operators during the six-month period. Overall office leasing across the seven major cities rose 6 per cent year-on-year to 35.7 million sq ft. While conventional office leasing remained largely stable at 27.1 million sq ft, demand from co-working operators recorded strong growth, reflecting changing workplace strategies among occupiers.

Industry experts attribute the trend to companies seeking greater flexibility in managing office space, particularly as hybrid work models become more established. Flexible workspaces also allow businesses to expand or consolidate operations without committing to long-term leases. Leading operators in the segment include WeWork India, Smartworks, Awfis, IndiQube, The Executive Centre, Incuspaze, Simpliwork Offices, COWRKS and Innov8, among others.

Modular Offices

• Co-working leasing stands at 8.6 million sq ft.
• Growth over last year pegged at 32%.
• Top growth markets include Bengaluru, Delhi-NCR, Hyderabad.

Demand driven by hybrid work models, flexible expansion, growing GCC presence.
• Cost and operational flexibility key aspect.