The Indian office market is undergoing a transformation, with more than 80 per cent of occupiers planning to expand through flexible workspaces (flex spaces) over the next three to five years. According to a new report titled Flex Spaces: Reshaping the New-Age India Office Market, approximately 60 per cent of occupiers aim to have at least 20 per cent of their office portfolios in flex spaces. In addition, nearly 40 per cent of occupiers see flex spaces as crucial centres for their core business operations.
The report, based on a survey conducted by Colliers, reflects the increasing adoption of flex spaces, driven by evolving workplace demands and enterprise-level offerings. Flex spaces offer businesses cost management flexibility, enhanced productivity, and tech-enabled features, which have made them attractive to large corporations, particularly multinational companies (MNCs). By 2030, MNCs are expected to increase their flex space usage by up to 4 times.
The survey highlights several key findings regarding the future of flex spaces in the office market. About 60 per cent of occupiers expect over 20 per cent of their office portfolios to consist of flex spaces within the next 3-5 years, with 30 per cent of occupiers planning for a flex share exceeding 40 per cent. Additionally, 80 per cent of occupiers plan to expand their office footprint using flex spaces in the coming years. Flex spaces are seen as enhancing flexibility and scalability for 60 per cent of respondents, while 40 per cent foresee them becoming core business hubs. Furthermore, 45 per cent of occupiers prefer to expand in central business districts (CBD) and suburban business districts (SBD) of major cities, reflecting the growing demand for prime locations.
Flex spaces have transitioned from niche options to a mainstream part of Grade A office space demand, solidifying their place in India’s future workplace landscape. According to the survey, flex spaces have become integral to many sectors, including technology, engineering, and healthcare. “Over 80 per cent of expansion in these sectors is expected to come through flex spaces,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
Flex Spaces For Core Operations
Traditionally seen as support centres, flex spaces are now being repurposed for core business functions. About 45 per cent of mid-sized companies and 35 per cent of large firms now carry out their core operations in flex spaces, particularly in the technology sector, where 40 per cent of occupiers are using these spaces for mission-critical activities.
As Vimal Nadar, Senior Director & Head of Research at Colliers India, explained, “The new-age workspace is evolving into a hub for collaboration, innovation, and well-being. Flex spaces now provide holistic solutions that cater to these needs, which is why many occupiers are committing to longer lease periods of up to three years—up from the typical short-term leases seen before the pandemic.”
Location Remains Key for Expansion
The survey found that 60 per cent of occupiers prioritise location when considering office expansion. Flex spaces in core areas of major cities remain the preferred choice, with 45 per cent of respondents planning future expansions in prime business districts of Tier I and Tier II cities. Flex spaces are also expected to support distributed work models, particularly for large companies like Global Capability Centers (GCCs) and MNCs.
With flex spaces poised to take a leading role in shaping India’s office market, their contribution to workplace strategy and overall business operations is set to grow significantly in the coming years.
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