India flexes to top of APAC's flex office league as GCC demand surges

Mid-tier global firms setting up GCCs for first time power the surge in flexible workspace demand

Driven by rising demand from global capability centres (GCCs) — especially mid-tier global firms entering India for the first time — the country has become the largest market in the Asia-Pacific region for flexible (flex) workspaces.

 

According to a global study by Cushman & Wakefield, India now has over 85 million square feet (msf) of flex office space. Of this, 35 msf has been leased in the past three years — equivalent to more than 500,000 seats.

 

Amit Ramani, managing director of Awfis Space Solutions, one of the leading players in the segment, says: “Today, mid-tier global companies are coming to India to set up GCCs for the first time — and they already account for 30 per cent of our flex office GCC business. These companies usually start with 100–200 seats to test the waters, and once comfortable, they scale up sharply. For us, 60–65 per cent of our information technology (IT)-IT-enabled services business, and around 30 per cent of our overall business, comes from such global firms with revenues below $5 billion. Of the 50 new GCCs that entered India in the past year, 11 are our clients.”

 

Ramani adds that long-established global players in India are also expanding. “For instance, eBay is now doubling its capacity with Awfis,” he says.

 

Others in the industry agree. Neetesh Sarda, founder of Smartworks — among the top players — says:

“Nearly 40 per cent of the demand is coming from GCCs. They’re driving most of the growth in flex offices. Even many Indian companies catering to GCCs’ requirements are expanding. Flex office space arrived in India later than in the US, Europe, China, or Japan — but it has boomed here.”

 

The surge in demand is directly linked to the rapid expansion of GCCs in India — the fastest anywhere in the world.

 

According to UnearthInsight, which tracks GCCs globally, India hosts over 1,780 GCCs, far ahead of China (960+), Malaysia (650+), Indonesia (560+), and Vietnam (500+).

 

Icra estimates that GCCs will lease an additional 50–55 msf of workspace by 2026-27, with their total number projected to rise to 2,500 by 2030. Ramani observes that US restrictions on H-1B visas have helped, as many American firms are now hiring more staff in India to work around the tougher immigration rules.

 

Sarda adds that global companies are finding it difficult to get employees back to offices abroad, so they’re turning to India’s large, office-ready talent pool.

 

He also points out that the flex office model has succeeded in India because the real estate market here is highly fragmented — unlike in the US, where large institutional players such as Brookfield or Blackstone own, fit out, and manage most properties.

 

“In India, around 75 per cent of commercial properties are owned by high networth individuals (HNIs) or ultra-HNIs looking for returns on investment. As a result, companies looking for space must deal with multiple stakeholders — which is a challenge. This gap is being bridged by flex office providers like us,” Sarda says.

 

India’s flex office market shows new muscle

 

•         New entrants: Mid-tier global firms with revenues under $5 billion setting up GCCs in India for first time

•         Test and scale: After 6–9 months of small pilots, many expand rapidly once confident

•         Veterans grow: Established GCCs adding capacity across major cities

•         Demand surge: GCCs now drive 30–40% of new flex office demand

•         Future pipeline: Set to lease another 50–55 msf by FY27

•         Market leader: India now APAC’s largest flex office market with 85 msf of stock

•         Global lead: GCC count to rise from 1,780 (already highest worldwide) to 2,500 by 2030