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In 2024, flexible workspace operators recorded a significant 57.5% year-on-year (YoY) growth, with a total gross leasing volume (GLV) of 12.4 million sq ft, accounting for 14% of India's overall office leasing. Bengaluru emerged as the leader, leasing 3.4 million sq ft, followed by Mumbai, Delhi-NCR, Hyderabad, and Pune. Additionally, flexible workspace operators leased out 2.24 lakh seats, marking a 44% increase from the previous year, with Bengaluru again taking the largest share. The IT-BPM sector remained the top contributor to seat leasing, followed by engineering, manufacturing, and other sectors.
In 2024, flexible workspace operators saw a remarkable 57.5% year-on-year (YoY) increase in gross leasing volume (GLV), reaching a total of 12.4 million sq ft, according to Cushman & Wakefield's office data. This surge means that the flexible workspace sector now accounts for 14% of India's total office leasing, which stands at 89 million sq ft. Advertisement
This growth builds on previous years' upward trajectory. In 2023, the sector recorded a leasing volume of 7.9 million sq ft, indicating a significant acceleration in demand. The 57.5% growth in 2024 highlights a clear and impressive trend of increasing interest in flexible office spaces. Bengaluru led the way with 3.4 million sq ft of leasing volume, followed by Mumbai, which recorded 1.9 million sq ft. Delhi-NCR registered 2.3 million sq ft, while both Hyderabad and Pune saw 1.6 million sq ft each.
Ramita Arora, Managing Director of Bengaluru and Head of Flex, India, at Cushman & Wakefield, shared that the demand for agile and flexible office solutions continues to grow as new companies (Global Capability Centers, or GCCs) enter the country and existing businesses focus on operational flexibility, cost efficiency, and end-to-end customization.
In terms of seat leasing, flexible workspace operators leased around 2.24 lakh seats by the end of 2024, marking a 44% increase from the 1.56 lakh seats leased in 2023. Bengaluru again led in this category, accounting for 29% of the total seats leased, with 64,000 seats taken. Pune, Delhi NCR, and Mumbai followed, leasing 39,000, 38,000, and 28,000 seats, respectively, contributing shares of 18%, 17%, and 12%.
The IT-BPM sector dominated flexible seat leasing in 2024, accounting for nearly 48% of the total seats leased. Engineering and manufacturing occupiers came next, contributing 17% of the total, while BFSI and professional services occupiers made up 10% and 6%, respectively. Looking at the historical data, the growth in seat leasing from 2023 to 2024 reflects the broader trend of businesses continuing to prioritize flexible and cost-efficient office spaces. This trend has accelerated in recent years, with 2024 marking another significant milestone in the sector's growth.
The flexible workspace sector's robust growth in 2024 highlights the increasing demand for adaptable and cost-efficient office solutions, driven by the entry of new companies and the need for operational flexibility. Bengaluru emerged as the dominant market, both in terms of leasing volume and seat leasing, reflecting its position as a hub for flexible workspace demand. As businesses continue to prioritize dynamic, managed office solutions, the sector is expected to see sustained growth in the coming years. The increasing share of the IT-BPM sector in flexible seat leasing signals ongoing demand from industries that value flexibility and customization, marking a key trend for the future.
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