Speaking to ET Now, Zia said office leasing in India is set to close well above 80 million square feet in calendar year 2025, making it one of the strongest years on record. Flexible workspaces alone are expected to contribute around 20% of total gross leasing, underlining their rising importance in occupier strategies.
Flex spaces scale up rapidly
India’s flex office footprint has expanded sharply over the past few years. Space occupied by flexible work operators has grown from around 34 million square feet in 2019 to nearly 100 million square feet currently. Over the next two years, this figure is projected to cross 144 million square feet, reflecting sustained demand from both multinational and domestic occupiers.
Zia said this growth reflects deeper structural changes in how companies use office space. “Flex is no longer a niche or stop-gap solution. It has become an integral part of corporate real estate strategy, especially for companies looking for scalability, speed-to-market and cost flexibility,” he said.
India defies global office slowdown
While office markets across the US and Europe have been hit hard by remote-working trends and economic uncertainty, India continues to outperform. Even other Asia-Pacific markets such as China, Singapore, Australia and Hong Kong have seen either contraction or flat growth in office absorption.
“India clearly stands out,” Zia said. “Despite global headwinds, office demand here has grown spectacularly year-on-year, and this momentum is expected to continue.”
GCCs and domestic demand power growth
Global Capability Centres (GCCs) remain a major driver of office demand, but Zia highlighted that local consumption and domestic businesses are increasingly contributing to absorption. This diversification of demand is helping cushion the market against global volatility and is particularly supportive of flex operators.“The demand is no longer only global-facing. Strong domestic growth is also supporting office leasing, which is a very healthy sign for the sector,” he noted.
Supply constraints aid flex expansion
On the supply side, Zia pointed out that many developers have shifted focus away from office projects in recent years, favouring residential development, especially in the luxury segment, due to higher margins and faster sales.
“As residential became the low-hanging fruit, office development slowed. This supply-side constraint has indirectly supported flex spaces, which can respond quickly to occupier needs without waiting for large new office completions,” he said.
Outlook remains strong
With sustained demand, limited new office supply and India’s growing appeal as a global and domestic business hub, Knight Frank expects flexible workspaces to continue outperforming the broader office market over the next few years.
“The fundamentals are firmly in place,” Zia said. “India’s office story—and especially the flex space segment—remains one of the brightest spots in global commercial real estate.”