Delhi-National Capital Region has toppled Bengaluru, India’s top office market, to become the new favourite for flexible workspaces. With a 42% share, Delhi-NCR benefited from corporate demand, good infrastructure, Grade-A supply, and larger transactions. Mint explains:
How has NCR fared on the flex office front?
Flexible workspaces have emerged as a core component in commercial real estate, capturing a record 20% share of 77.2 million sq. ft of overall office leasing in 2024, as per JLL India estimates. Delhi-NCR stole a march over all other major cities, accounting for the largest share in flex leasing activity of 15.3 million sq. ft. Pune, which has seen active expansion by flex operators in recent times, came in second, pushing Bengaluru, the country’s biggest flex ecosystem, to the third spot. Flex office stock in 2024 hit 74 million sq. ft, and surpassed the million-seat milestone across the top seven cities.
What has driven the growth?
The turnaround of Delhi-NCR as a real estate market has not just been in the residential space, but in the commercial segment as well. As an office market, NCR has attracted demand from diverse pools—technology companies, flex space operators, and research and consulting firms. Good connectivity and infrastructure, talent pool and Grade-A office supply have driven flex office leasing in the region in recent years. Analysts expect both Delhi-NCR and Bengaluru to vie for the top slot. To stay ahead, NCR needs to bring in more supply, beyond Gurugram, which is the currently the most favoured market.
Which are the key flex office hubs in NCR?
Gurugram has seen major flex deals due to quality supply. Google leased 550,000 sq. ft from Table Space in Gurugram. Smartworks, headed for a listing, leased 470,000 sq. ft at DLF City-V in Gurugram. Its other managed offices in Gurugram are in Golf View Corporate Towers, RK 4 Square and ASF Insignia. WeWork too leased 1.17 lakh sq. ft in DLF CyberCity.
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How have flex offices reshaped strategies?
Companies setting up offices in India, including global capability centres, are adopting flex solutions as a starting point, for flexibility and to contain costs. As they grow bigger, they use a mix of traditional and flex offices. Operators have addressed occupiers’ needs for better quality buildings with green certifications. Over two-thirds of all space leased by flex operators last year was in ‘green-certified’ office parks. Enterprise demand has skyrocketed, leading to a record 183,200 flex seats leased to businesses in 2024.
How will the sector grow from here?
As per JLL’s estimates, by 2026, the operational footprint of flex office space across the top seven cities will surpass 100 million sq. ft. While Bengaluru and Delhi-NCR continue to dominate, Hyderabad, Pune and Chennai have also grown in flex office leasing, signalling a broader acceptance. A number of new flex office startups have launched. Tier II and III cities are relatively minor contributors today, but that is changing. Operators are opening centres in Indore, Kochi, Coimbatore and Ahmedabad.
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