Colliers estimates that average annual enterprise seat demand will increase by 25%, reaching nearly 200,000 seats in 2026 and 2027 compared to 160,000 seats in 2024–2025.

Enterprise Demand, GCC Growth Fuel Next Wave

According to the report, technology and BFSI companies will account for 60–65% of enterprise seat uptake, while engineering, manufacturing, and consulting firms are expected to contribute 10–15% each. Enterprise occupiers now account for nearly 70% of total flex demand.

A major shift is the growing dominance of GCCs. They accounted for 40–45% of enterprise seat uptake in 2025, and their share is likely to rise to nearly 50% over the next two years as they scale R&D, analytics, engineering, and AI capabilities in India.

“As domestic enterprises and GCCs deepen their flex adoption, operators are curating next-generation, customized workspaces with advanced PropTech and ESG features. Several operators raising capital through IPOs further reflects strong investor confidence,”
said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

Bengaluru Dominates, Pune Leads in Penetration

With 22.6 million sq ft of operational flex space, Bengaluru remains India’s largest flex market, accounting for 31% of national stock. Delhi NCR follows with 12.5 million sq ft.

Pune stands out for having the highest flex penetration at 11.5%, supported by demand from tech, BFSI, and start-up ecosystems.
Chennai, meanwhile, has recorded an impressive 5.6X growth in flex stock since 2021.

City-Wise Highlights (2025E)

• Bengaluru: 22.6 msf flex stock | 9.7% penetration
• Pune: 9.9 msf | 11.5% penetration (highest)
• Delhi NCR: 12.5 msf | 8.2% penetration
• Chennai: 7.3 msf | 8.2% penetration | 5.6X growth
• Mumbai: 9.7 msf | 7.1% penetration
• Hyderabad: 9.6 msf | 7.7% penetration

Overall, flex stock across India’s top 7 cities has grown 2.4X between 2021 and 2025.

Tech-Enabled, Customised & ESG-Focused Workspaces in Demand

Occupiers increasingly prefer scalable, plug-and-play, managed offices with deep tech integration. Flex operators are upgrading their offerings with:

• Occupier-specific customisation
• PropTech-driven workspace management
• “GCC-as-a-Service” models
• Compliance-ready infrastructure
• Strong ESG features and green-certified buildings

Nearly 70% of flex space uptake in the last 2–3 years has been in green-certified buildings.

Tier II Expansion to Strengthen

While Tier I cities continue to dominate flex absorption—especially Secondary Business Districts (SBDs)—operators are rapidly scaling into Tier II markets such as Ahmedabad, Jaipur, Kochi, Chandigarh, Lucknow, Indore, Bhubaneswar, and Coimbatore.

Seat rentals in these cities are 30–35% lower than Tier I, making them attractive for distributed workforce and hub-and-spoke models. By 2027, Tier II cities could account for 10–15% of India’s flex stock.

“With sustainability features, PropTech adoption and enterprise-grade solutions expanding rapidly, GCCs are expected to drive nearly half of total enterprise demand over the next two years,”
said Vimal Nadar, National Director & Head of Research, Colliers India.

Also Read: Hiring Wave Ahead: Office Space Demand Soars

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