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Large enterprises have decisively reshaped India's flexible workspace market, marking a clear shift from its startup-led origins to a core element of corporate real estate strategy. According to Knight Frank's report "Flex Space Occupier Intelligence: Who is Occupying Flex Space in India - and Why It Matters," big corporates now account for 72% of total flex seat absorption--far outpacing SMEs (18%) and startups (10%).
"Across the eight major cities analysed, Large Enterprises account for 72% of total flex seat absorption at the national level, far exceeding SMEs at 18% and startups at 10%," the report said. According to Knight Frank, the growing dominance of large corporates indicates that flexible workspaces are no longer limited to early-stage companies but are increasingly being adopted by multinational firms and large Indian enterprises as part of their real estate strategy. "Flexible workspaces are no longer a niche option for early-stage companies but are increasingly being adopted by large corporates and multinational firms as a strategic component of their real estate portfolio," the report stated. The report also highlights the rapid expansion of India's flex office market over the past decade. "From a niche category accounting for just 2.2 mn sq ft of transactions in 2017, the segment has expanded to 18.6 mn sq ft in 2025, representing an 8.4x increase over eight years," the report said. As a result, the share of flexible workspaces in total office transactions has risen sharply. "Flex space penetration has increased from 5% in 2017 to 21% in 2025, indicating that flexible workspaces are no longer a transitional option but an increasingly structural layer within India's office ecosystem," Knight Frank said. The report further pointed out that global multinational corporations dominate enterprise demand within the flex segment. "Within the 72% share of flex seats occupied by Large Enterprises, global multinational corporations (MNCs) represent the overwhelming majority... accounting for 81% of enterprise seats," it noted. According to the report, many of these firms use flexible workspaces to establish or expand Global Capability Centres (GCCs) in India. "Cross-border corporate expansion and GCC-led demand remain the primary drivers of enterprise-scale adoption of flexible workspace solutions in India," the report said. From an operational perspective, GCCs account for 52 per cent of total flex seat demand nationally, followed by third-party IT companies at 26 per cent and India-facing businesses at 22 per cent. The report said flexible workspaces offer multinational firms faster market entry and the ability to scale operations without long-term lease commitments. "Flex spaces allow global firms to enter new markets quickly, establish delivery capacity, and scale teams without the long lead times associated with traditional office fitouts and leases," the report noted. Industry-wise, the technology sector remains the largest driver of flex demand in India. "At the national level, Information Technology accounts for the largest share of flex seats at 43%. BFSI follows at 25%, while Other Service Sectors account for 24%," the report said. Knight Frank noted that the growth of flexible workspaces is closely linked to India's role as a global services hub. "The dominance of GCCs (52% of flex seats nationally) highlights the deep link between India's offshore services ecosystem and the growth of flexible offices," the report said. The study further analysed seat-level transactions executed by flex space operators across eight major Indian office markets - Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR), and Pune - between 2020 and 2025. According to the report, the findings indicate that flexible workspaces have firmly entered the corporate mainstream, with enterprises increasingly using them for expansion, project teams, and satellite offices. (ANI)
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