Flexible workspace firms clinch big deals in Q4

New Delhi: Large and listed flexible workspace operators stitched some of the largest office space deals in the segment during the quarter to March as demand continued to grow.

Smartworks took close to 900,000 sq ft space across Gurgaon and Bengaluru while WeWork leased 575,000 sq ft in Mumbai, Chennai and Hyderabad.

The Executive Centre and Table Space, which is in the process of listing on the bourses, leased 200,000 sq ft and 100,000 sq ft in Hyderabad and Bengaluru, respectively.


“Within the flexible workspace segment, operators providing high-end spaces are in huge demand. We have leased three centres at One Horizon Centre, Oberoi Centre and Paras tower in Gurugram, under the brand name of Kepler by SKV. Most of them are already pre-committed and we are in talks to lease more space in the ultra-luxury buildings of top cities,” said Tushar Mittal, a serial entrepreneur and founder of Kepler.

Kepler will compete with the likes of The Executive Centre, which provides ultra-premium workspace to companies.

Cumulatively, these operators leased close to 2 million sq ft of office space during the quarter.

Simpliwork leased 100,000 sq ft in Chennai, while Awfis took 24,000 sq ft in Kolkata and Redbrick took 21,000 sq ft in Kolkata.

“We are witnessing a structural shift in occupier strategy and not a cyclical trend,” said Amit Ramani, chairman and managing director, Awfis Space Solutions Ltd. “Flexible workspace has firmly entered the mainstream, especially for large enterprises looking to optimise capital allocation and accelerate expansion. Our study on managed offices indicates that 71% of enterprises cite cost efficiency as the most critical factor in their decision-making process.”

Managed offices allow enterprises to convert fixed real estate costs into variable operating expenses, while significantly reducing time-to-market. Industry estimates suggest flex space penetration in India is expected to cross 12-15% of total office stock over the next few years, with enterprise-led demand driving a large share of this growth.

“Q4 FY26 was an important quarter for us, in terms of scale and the nature of demand,” said a WeWork India spokesperson. “We signed over 700,000 sq ft across Bengaluru, Hyderabad and Chennai, along with a 10-year lease for WeWork Embassy Vertex in Bengaluru, spanning ~81,000 sq. ft. and scheduled to open next month. Additionally, we signed a 2.6 lakh sq ft lease in Pune as well. Flex is now accounting for over 20% of total absorption, led by GCCs (global capability centres) that are scaling rapidly and seeking agility without compromising on quality or control.”

According to Cushman & Wakefield, net absorption stood at 11.51 million sq ft in the January-March period, reflecting a 28% quarter-on-quarter and 24% year-on-year decline. The moderation was largely on account of softer fresh leasing following a strong end to 2025, along with slower supply completions, which limited the physical realisation of pre‑committed demand during the quarter.

"The rise in large-format flexible workspace transactions, signals a structural shift in how companies are approaching office space. Demand is being led by GCCs, IT/ITeS and AI-led firms that are positioning India as a strategic hub, with a clear preference for high-quality, managed and flexible environments,” said Paul Salnikoff, managing director and CEO, The Executive Centre.

“This is translating into larger, more deliberate commitments to flexible workspaces, the market witnessing strong momentum from technology and GCC occupiers. In response to this momentum, we are undertaking a calibrated expansion across north, south and west India to keep pace with demand that is becoming more broad-based across key cities,” he added.

Smartworks recently crossed 10 million sq ft of operational portfolio, becoming the first listed flexible workspace provider in India to reach the milestone.

Premium flexible workspace provider Executive CentreIndia Limited recently leased 480,000 sq ft at Worldmark Aerocity across three centres.

India’s flexible workspace sector has crossed the 100 million sq ft mark and is on track to achieve a $9-10 billion valuation by 2028, entering a phase of profitability-led growth as operators pivot from aggressive expansion to margin discipline amid a surge in enterprise demand, according to myHQ by Anarock.

GCCs accounted for close to 40% of new seats in recent quarters. At the same time, average deal sizes more than doubled to 53 seats in 2025 from 25 seats in 2023, reflecting growing confidence in flexible workspace as a core real estate strategy.

The banking, financial services and insurance sector has also significantly expanded its coworking footprint, underscoring growing trust in flex operators' compliance and infrastructure capabilities.