2024 Indian Flexible Office Market Report

Flexible Offices Are Reshaping India’s Workplace Landscape

India’s flexible office market is expanding rapidly, driven by hybrid work models, increasing demand for flexible leases, and shifting work preferences. According to the Mordor Intelligence report, the market is projected to grow from $2.30 billion in 2025 to $3.24 billion by 2030 at a compound annual growth rate (CAGR) of 7.05%. Seat uptake rose from 85,234 in 2021 to 155,000 in 2023, with 106,554 seats leased in the first half of 2024 alone. The segment’s share in total office leasing increased from 10.2% in 2019 to 12.7% by mid-2024. Managed office solutions have emerged as a preferred choice for enterprises seeking customised workspaces.
 

 

2024 Supply of Flexible Offices in India

According to a Business Standard report, 2024 marked a historic high in India’s office leasing market, with a total of 81.7 million square feet leased. This represents a 19% rise over 2023, setting a new benchmark for commercial real estate activity in the country.

Average Desk Price Per Workspace Type

Office desk prices in India vary significantly based on the level of service and customisation offered. Enterprise offices are the most expensive, with a monthly average rent of ₹20,000 per desk, catering to large corporations. Serviced offices are priced at around ₹18,000 per desk per month. Desks in managed offices, offering customised solutions with operational support, cost approximately ₹15,000 per month. Coworking spaces, preferred by startups, have a monthly rental average of ₹14,000 per desk, while shared offices are slightly lower at ₹13,000 per desk. Desks at sublet offices offer cost-effective alternatives at ₹12,000 per month. Virtual offices are the most affordable option, priced at just ₹1,000 monthly.
 

Data from Office Hub’s 2024 Co-Stats Report

Infrastructure & Workspace Trends in India's Flexible Office Market (2024)

Grade A buildings dominate India’s flexible office market, making up 67% of the total space. These premium spaces attract large enterprises due to their top-tier amenities and prime locations. Grade B buildings follow with a 25% share, balancing quality and affordability for mid-sized firms. Grade C buildings, at 8%, offer budget-friendly options for smaller businesses.

Classic serviced offices are the most preferred workspace type, accounting for 59.7% of the market. Coworking spaces follow at 33.8%, appealing to startups and freelancers. Creative serviced offices account for 5%, while managed offices make up 1%. Conventional offices have dropped to just 0.5%, signalling a shift toward flexible, plug-and-play solutions.
 

Data from Office Hub’s 2024 Co-Stats Report


Data from Office Hub’s 2024 Co-Stats Report

Average Floor Area by Workspace Type

In India, the average floor space of a sublet or shared workspace is 325 square meters, with a total area of 1,300 square meters across listings. In contrast, serviced and coworking workspaces have a significantly larger average floorplan of 2,427 square meters, contributing to a total area of 1,849,374 square meters. This indicates a clear scale difference, with serviced and coworking spaces offering larger, more expansive environments compared to smaller, compact shared setups.

India Flexible Workspace Supply on the Rise

Here are some key points about the supply of flexible offices in India for 2024.

Explosive Growth in Flexible Workspace Supply

According to The Economic Times, India’s flexible office space segment captured 19.8% of the total leasing market in 2024, driven by the post-pandemic recovery and expansion of managed spaces. 

The country saw a massive 703.5% annual increase in available workspaces and a 472.8% rise in flexible space listings compared to the previous year. This sharp growth reflects strong demand for adaptable leasing models across major cities like Delhi NCR, Pune, and Bengaluru.

Key Drivers Behind the Supply Boom

The surge in flexible office supply is fueled by India’s rapid digitalisation, a growing startup ecosystem, and the increasing adoption of hybrid work models. Infrastructural investments and a rise in demand for green-certified commercial spaces have also played a crucial role in expanding the market’s footprint.

Market Outlook and Future Trends

According to Verified Market Research, the flexible office space market in India is projected to grow from $2.01 billion in 2023 to $3.45 billion by 2031, at a CAGR of 7.05%. The Economic Times reported that flex leasing exceeded 15 million square feet in 2024, with the Delhi-NCR contributing 42% of that share. As businesses continue to prioritise flexibility, sustainability, and cost efficiency, supply in this sector is expected to maintain strong momentum.

India’s Flex Space Market in 2024: Insights from Office Hub

• In 2024, Office Hub lists 876,507 desks available for rent across India, with 75.1% of them being private offices. 
• The average desk price is ₹13,000 per month. 
• About 1% of the listings are from private companies sharing their space with like-minded businesses. 
• Currently, 33.7% of active listings offer discounts, with an average discount of 11.3%.
• Overall, 11.9% of all listings include a discount, averaging around 10.2%.

Data from Office Hub’s 2024 Co-Stats Report.

 

Data from Office Hub’s 2024 Co-Stats Report.

2024 Demand for Flexible Offices in India

Demand for flexible offices in India is increasing. This shift underscores their evolution into a mainstream real estate solution, moving beyond their earlier role as an alternative to traditional office space options.

Rising Demand for Flexible Workspaces in India: 2024 Trends and Insights

Overall Demand and Peak Period

Flexible workspaces accounted for 14% of India’s total office space demand in 2024, as reported by Business World. Demand peaked in Q2 2024, especially in metro cities, with enterprise suites and coworking spaces emerging as the most sought-after workspace type due to their scalability and collaborative features.

Inquiries and Conversion Rate

CBRE reports indicate a steady increase in inquiries, primarily driven by hybrid work models. Approximately 30% of occupiers plan to expand their use of flexible offices over the next year. Conversion rates remained strong in top cities like Bengaluru and Mumbai, especially among domestic and American-headquartered companies.

Workspace Shifts and Preferences

According to CBRE’s India Office Occupier Survey 2024, many companies are shifting away from traditional leases and opting for more flexible options. Startups and small businesses prefer coworking spaces because they are affordable and offer shared amenities. Larger companies are shifting towards private and managed offices for more exclusivity and customisation. Shared, managed, coworking, and enterprise models are becoming especially popular among all types of businesses as they offer a balance of flexibility and structure.

Occupancy and Leasing Rates

CBRE’s report also revealed that the average occupancy across flexible workspaces remained above 80%. Leasing rates improved, with over 15 million sq ft leased in 2024. The overall stock of flexible workspaces rose from 35 million sq. ft. in 2020 to 79 million sq. ft. by mid-2024.

Industry-Wise Demand Share

According to CBRE, over 70% of transactions were led by domestic and American firms. High demand came from IT/ITES, fintech, e-commerce, and consulting sectors. Enterprises focused on flexibility, wellness, and smart amenities drove much of the shift, supported by tech-driven workspace management.

India’s Evolving Workspace Preferences in 2024

In 2024, Indian companies are navigating a balanced shift between conventional offices (46%) and remote work (42%), with flexible options gradually gaining traction. Among those actively seeking workspace solutions, 72% prefer private offices, highlighting a strong demand for secure, dedicated spaces, while 21% opt for coworking desks, signalling continued interest in collaborative and flexible environments.
 

Data from Office Hub’s 2024 Co-Stats Report.


Data from Office Hub’s 2024 Co-Stats Report.

Flexible Workspace Demand Across Key Sectors in India

In 2024, enquiries for flexible workspaces in India were led by a diverse range of industries. The largest share came from the "Other" category at 37%, followed by Digital, IT, and Software companies at 21%, and Business Services at 13%. This highlights growing demand across both tech-driven and service-oriented sectors.
 

Data from Office Hub’s 2024 Co-Stats Report.

Why People Move to Flexible Offices in India?

As return-to-office plans accelerate across India, flexible office spaces are emerging as a preferred solution for employers. According to Business Standard, nearly 47% of corporates plan to increase their use of flexible workspaces in 2024. The need for agility, cost-efficiency, and employee-centric environments drives this shift.

Key Motivations Behind Office Moves in 2024

In India, the top reasons tenants searched for a new office in 2024 were driven by practical needs. About 52% were motivated by the need for a better location, 27% moved due to lease expirations, and 13% moved due to business expansion.
 

Data from Office Hub’s 2024 Co-Stats Report.

2024 Tenant Demand: Desk Preferences and Budget Insights

Based on over 50,000 global enquiries via Office Hub, Indian tenants in 2024 typically sought 8.1 desks, with an average monthly budget of ₹11,386 per desk and a preferred move-in timeframe of 27.8 days. Enterprise-level enquiries (50+ desks) were excluded for consistency.
 

Data from Office Hub’s 2024 Co-Stats Report.

Trends of Flexible Office Demand in India

The following are the trends that drive demand for flexible offices in India.

Mainstream Adoption of Hybrid Workspaces

Post-pandemic, India’s office space landscape is evolving into a more experience-driven and employee-centric environment. The rise of hybrid workspaces, which combine fixed and flexible seating, has led to a higher demand for customised, managed, and flexible workspaces.

Tier 2 Cities Embrace the Hub-and-Spoke Model

Tier-2 cities such as Ahmedabad, Lucknow, Jaipur, and Kochi are experiencing a rise in demand for flexible spaces. Large corporations are enabling employees to work from their hometowns, reducing costs and improving work-life balance.

Shift to Managed and Serviced Offices

Businesses are transitioning from conventional spaces to fully managed offices, outsourcing workspace operations to coworking providers. This shift supports operational focus and offers greater flexibility.

Health & Safety Prioritised in Office Design

Post-pandemic, health and safety features such as touchless systems, air filtration, and medical facilities have become essential. These factors now heavily influence the prioritisation of flexible offices that are designed with the health and safety of tenants in mind.

Key Amenities Driving Demand for Flexible Workspaces in India (2024)

In 2024, tenant preferences in India’s flexible office market highlight a strong demand for high-functioning, ready-to-use spaces. A reliable internet connection tops the list, with 78% of tenants prioritising fast internet. This is followed by a preference for fully furnished workspaces (51%), 24/7 access (49%), and budget-friendly options (29%). These trends reflect a growing focus on convenience, flexibility, and cost-efficiency among modern workspace users.
 

Data from Office Hub’s 2024 Co-Stats Report.

Regional Breakdown of Indian Flexible Office Space Market (2024)

Across India’s major markets, office space rents vary widely based on location and city. In Bengaluru, rents range from ₹70 to ₹120 per square foot per month, reflecting its status as a tech hub. Mumbai commands the highest rates, ranging from ₹150 to ₹ 250 (and up to ₹300 in prime areas). Delhi shows south‐to‐north variation: central areas cost ₹120–250, Cyber Hub/Saket ₹80–150, and Dwarka/Rohini ₹40–70. Hyderabad’s prime IT zones (HITEC City, Gachibowli) range ₹40–80, while Pune’s core markets (Hinjewadi, Koregaon Park) are ₹50–90 and emerging hubs (Wakad, Baner) are ₹30–60 per sq ft/month.
 

 

2024 Inquiry-to-Deal Conversion in India’s Flexible Workspace Market

In 2024, roughly 1.9% of enquiries for flexible workspaces in India converted into signed deals, reflecting rising commitment to agile office solutions. The average lease term was 8.9 months, accommodating teams of about 15.4 people at a typical desk rate of ₹11,545 per month. These agreements translated into an average contract value of ₹1,209,718, underscoring the strong performance of India’s flexible office sector.
 

Data from Office Hub’s 2024 Co-Stats Report.

2024 Signed Contracts by Industry in India

In 2024, Digital IT/Software led all industry segments in flexible workspace sign‑ups, accounting for 25% of signed contracts. Business Services followed at 12%, reflecting strong demand from consulting and support firms.
 

Data from Office Hub’s 2024 Co-Stats Report. 

2024 Contract Distribution by Provider and Space Type

In 2024, companies in India overwhelmingly chose classic serviced office providers, with 88% of signed contracts going to classic serviced offices and 12% to creative serviced offices. All agreements were for private office space, reflecting strong demand for dedicated, fully serviced environments.

 

Data from Office Hub’s 2024 Co-Stats Report.

Enquiry‑to‑Move‑In Timeline Trends (2022–2024)

Over the past few years, the average duration from initial enquiry to actual move-in has varied as processes have matured and market conditions have shifted. The breakdown below highlights enquiry‑to‑won, won‑to‑move‑in, and total days for each year.
 

Data from Office Hub’s 2024 Co-Stats Report.

Future of Flexible Offices in India

The future of flexible offices in India is being accelerated by growth and adoption, and is set to account for over one-fifth of the total office stock by 2025.

Record Growth and Market Share

In 2024, flexible leases accounted for one in five office agreements, driving gross leasing to 89 million square feet—a 19% year-over-year increase. Flex operators captured 12.5 million square feet (MSF) , up from 7 MSF in 2023, underscoring their expanding market footprint.

Robust Stock and Projections

India’s flexible office space is growing fast. By 2025, it is expected to reach 67 million square feet (MSF), making up 20–21% of the country's office space. If this pace continues, the total could exceed 100 MSF by 2026, growing at a steady rate of 15–20% per year.

Corporate Agility and Specialised Needs

Enterprises favour managed offices to scale swiftly without long‑term commitments. Industry-specific solutions (such as healthcare labs, R&D centres, and data facilities) are gaining traction due to their tailored infrastructure.

Sustainability and Environmental, Social, and Governance (ESG) Alignment

Green-certified, energy-efficient workspaces are increasingly preferred as ESG compliance becomes a corporate imperative, driving demand for eco-friendly, flexible offices.

Emerging Demand Centres

Tier 2 and Tier 3 cities, such as Indore, Chandigarh, Surat, and Lucknow, are seeing a rapid uptake, supporting a national hub-and-spoke approach that brings office space closer to talent pools.

Global Capability Centers (GCCs) Leadership

Global Capability Centres (GCCs) drove 29.4 MSF of leasing in 2024 (37 % of total), reinforcing India’s position as a global outsourcing hub and cementing flexible offices as a strategic choice for multinational operations.

Conclusion

The Indian flexible office space market in 2024 has demonstrated remarkable resilience and adaptability, driven by hybrid work models and the increasing demand for employee-centric environments. The shift from traditional long-term leases to more dynamic and agile workspace solutions has helped companies navigate uncertainty, scale operations, and foster collaboration. With strong demand from sectors such as technology, consulting, and BFSI, along with the rise in adoption of flexible workspaces in Tier 2 cities, the future of flexible workspaces is poised for continued growth and evolution.

For businesses seeking to harness this momentum, connect Office Hub, which offers a powerful gateway to discover, compare, and secure flexible office solutions. Office Hub connects occupiers to premium spaces with unmatched ease and transparency. As organisations continue redefining how and where work happens, partnering with Office Hub ensures not just convenience, but access to the future of workspaces—smarter, faster, and more flexible than ever before.