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Bengaluru leads flexible office footprint with 31% share
admin | October 7, 2025 8:22 AM CST

Bengaluru: Bengaluru dominates the country's flexible office market in India with a 31% share of the overall market. Flex office space refers to a shared workspace model, and it supports hybrid work models.
Since the city serves several global corporates, Global Capability Centres (GCCs) and startups, it remains the country's deepest flex ecosystem. Various industry experts estimate the Flexible Office Space stock in the country to cross 100 million sq ft by 2026 from the present 85 million sq ft. The average requirement size from an Indian corporate has grown from 20 seats to over 50 seats in just two years. Anuj Puri, group chairman of Real estate consultant ANAROCK, said the sector now includes over 1,500 unique brands with more than 50 players operating 10 or more centres. While HSR Layout and Koramangala see more startup-driven demand, the Outer Ring Road and Whitefield dominate enterprise flex, according to a report by myHQ by ANAROCK, a provider of coworking space solutions. While conceding that congestion on ORR is an "undeniable challenge", Utkarsh Kawatra, co-founder and CEO of myHQ by ANAROCK, told DH that long-term structural solutions like the ORR-Airport Metro line - scheduled for completion by December 2027- are expected to improve connectivity. "Once operational, it will not only ease commuter movement but also make flex workspaces more attractive," he said. With an 18.1% share of flex, HSR Layout has high flex density, as affordable residential proximity sustains startups and fast-scale team demand. With enterprise corridors anchored by Embassy Tech Village, RMZ Ecospace and Helios, Outer Ring Road sees increasing enterprise demand. With many IT campuses, competitive rentals and scalable Grade-A stock attracting IT/ITeS and GCC occupiers, Whitefield sees 8.3% flex share in Bengaluru. Experts are of the view that North Bengaluru will see more demand in the near future due to airport connectivity, as it makes it attractive for R&D and GCCs. "Flexi office space used to have 5% market share of the overall office absorption, before Covid. But post-Covid, this percentage has increased to 20-25% as the market changed and more tenants adopted the flexi office model," said Nirupa Shankar, joint managing director of Brigade Enterprises. She added that flexi office spaces could account for 25% to 30% of the total office absorption by 2030 as more organised players are entering the market. "In Bengaluru, Whitefield, ORR and HSR are popular destinations for flexible office spaces, and Northwest Bengaluru and North Bengaluru are upcoming," she added. Recently, real estate consulting firm CBRE, in its report, mentioned that Bengaluru topped the list of 20 APAC cities with the highest flexible office stock at 15.5 mn sq ft in the APAC region, including Shanghai, Seoul and Tokyo. Startups, SMEs and corporates drive flex office demand, and IT/ITeS companies are pioneering in embracing new work models and innovative workplace solutions. myHQ by ANAROCK report highlighted that in the flexible workspace segment, IT/ITeS clients represent over 40% of total demand -- about 15% higher than their share in traditional commercial leasing. With India's GCC base projected to reach above 2,500 by 2030, Karnataka will see more flex demand. Kawatra said startups were the pioneers that made flexible workspace aspirational in India; however, today, enterprises are cementing their indispensability. Flexible solutions currently account for 20% of all office transactions, and by 2030, their market penetration is set to reach around 30% -- one in three offices will operate within a flex space. From a market standpoint, India's coworking sector is estimated at $3.98 billion in 2024. With Bengaluru's 31% share, the city's flex market can be pegged at around $ 1.23 billion.


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