What is the impact of flexi-work on office demand?

Flexi-work or flexible working arrangements including hybrid schedules, part-time WFH, and coworking membership have created a new occupier category in India's commercial real estate market.

Growth of Flex Spaces

• Flex office space stock in India: ~55 million sq. ft. across top 7 cities (2024).
• Flex operators WeWork, Awfis, Smartworks, IndiQube, 315Work Avenue collectively occupy 10%+ of total office stock.
• Enterprise flex (managed offices for large companies) is the fastest-growing segment.
• Flex space growing at 20–25% CAGR in India vs. 5–8% for traditional office leasing.

Why Flexi-Work Drives Flex Office Growth

• Companies adopting hybrid models need flexible seating no point leasing 1,000 fixed desks if only 600 are used daily.
• Startups and SMEs use flexi spaces to scale up or down without long lease commitments.
• MNCs use managed offices in India as 'landing pads' before committing to longer leases.
• Employee experience: Coworking spaces offer amenities (cafes, gyms, events) that small offices can't.

Flexi-work is not the enemy of commercial real estate it is reshaping it. Flex spaces are becoming a core occupier category in India, and landlords and developers who embrace flexibility will be best positioned for the future of work.