India retains its position as the world's most mature flexible office market

India’s share of global bookings of coworking space has increased sharply from 2.2% in H1 2025 to 10.2% in H1 2026, making it the second-most active market globally after the United States.

India has also retained its position as the world's most mature flexible office market with a 100% score on Cushman & Wakefield's flexible office market maturity Index.

“Flexible offices today can support businesses across the lifecycle of their real estate requirements, from establishing a presence to scaling teams and managing longer-term portfolio needs. More importantly, we are seeing demand, capital and product quality advance together, which is creating a stronger foundation for sustained growth,” said Ramita Arora, Executive Managing Director, Bengaluru & Head - Flex, India, Cushman & Wakefield.


The Index is a scoring system that assesses flexible office markets across a range of indicators (market size, leasing activity, operator presence, workplace formats, landlord participation, operating models, managed space adoption, market transparency and tenant demand). Markets are scored and normalised to enable comparison across global regions and identify the world's most mature flexible office ecosystems.

According to an Upflex analysis of nearly 23,000 on-demand bookings, India’s share of global bookings increased sharply from 2.2% in H1 2025 to 10.2% in H1 2026, making it the second-most active market globally after the United States.

India’s flexible office inventory reached 88.7 million square feet (MSF) in H1 2026, accounting for 10.5% of the country's total office stock. The market is expected to cross the 100 MSF mark in 2026 and expand to approximately 160 MSF by 2030, nearly doubling from current levels as operators continue expanding to meet growing enterprise demand.

“Greater institutional participation is bringing long-term capital and discipline into the sector, while evolving occupier expectations are pushing operators towards higher-quality, more sophisticated offerings. With newer demand pools also emerging, including AI-led businesses, the opportunity for flex is becoming both broader and more enduring,” Arora said.

The expansion is being underpinned by sustained occupier demand. Flexible office operators leased 8.5 MSF across India’s top eight cities in H1 2026, their strongest ever first half performance, while flexible workspace now accounts for around 20% of overall office leasing in India. Between 2023 and 2025, operators leased 44.1 MSF of space, representing more than 720,000 flex seats.

Managed office requirements averaged between 350 and 500 seats. At the same time, seat demand has expanded consistently despite periods of macroeconomic volatility- growing nearly 7x from ~38,000 seats in 2020 to an estimated 300,000 in 2026.

This growth is extending across India’s office markets. In H1 2026, flexible office operators accounted for 35% of overall office leasing in Pune, 33% in Ahmedabad and 26% in Hyderabad. Alongside continued growth in Tier I markets, Tier II cities and international expansion by Indian operators are also emerging as the next frontiers for the sector.

The report also highlights how India's growing flex ecosystem is influencing markets beyond its borders. Indian operators are expanding internationally, while regional and global providers continue to increase their presence in India.

Examples include Smartworks' expansion into Singapore and Table Space's proposed entry into the Philippines through a strategic stake in KMC Solutions. Meanwhile, regional operators such as JustCo and several Middle East-based flexible office providers continue to expand into India.

India’s flex ecosystem enters its next phase

As the market expands, operators are increasingly focusing on higher-quality assets and a broader range of workplace solutions. Alongside acquiring premium assets and upgrading older stock, providers are expanding beyond traditional coworking to managed offices, fit-out solutions and integrated workplace services.

Demand is evolving too, with GCCs and multinational companies increasingly using flex to enter and expand across markets. AI is emerging as another growth opportunity, with India among the leading markets to have developed a mature AI ecosystem within the flexible office sector. Plug-and-play scalable workplaces are particularly aligned with the rapidly evolving space requirements of AI companies.

Growing institutional capital is also supporting expansion and consolidation. Four flex operators are now publicly listed, with another IPO in the pipeline, strengthening operators’ ability to scale and invest in higher-quality portfolios.