India crosses 100 mn sq ft flex office space as GCC demand surges

India's flex office space market crossed 100 million sq ft in FY26, supported by strong enterprise demand, rising profitability, sustained occupancy levels and growing GCC activity

India's flex office space crossed the 100 million square feet (msf) mark as the sector ended fiscal year 2026 (FY26) at its strongest commercial footing yet, marked by robust revenue growth, expanding profitability, sustained occupancy levels, and increasing enterprise adoption, according to a report by myHQ.

 

Ratings firm Crisil has projected sector capacity at 140-145 msf by FY28.

 

Backed by real estate consultancy Anarock and flex-space operator WeWork India, myHQ is India's largest commercial real estate discovery platform.

 

Utkarsh Kawatra, co-founder and chief executive officer, myHQ, said, "The sector has moved past the question of whether flex works as a business model. The results confirm it does. What we witnessed in FY26 was not merely expansion, but validation of the industry's long-term fundamentals and path to profitability. Global capability centres (GCCs) are now the single biggest demand driver, the average deal size has roughly doubled in two years, and customer tenures are lengthening. India's flex sector enters FY27 in a position of genuine strength."

 

The report highlighted that all five listed Indian flex-office operators grew revenue in double digits during the fourth quarter of fiscal year 2026 (Q4 FY26), with WeWork India posting the highest quarterly profit ever recorded by a listed Indian flex operator (₹65.9 crore).

 

According to the report, revenue growth remained strong across listed flexible workspace companies during both Q4 FY26 and FY26. Earnings before interest, tax, depreciation and amortisation (Ebitda) margins improved significantly, reflecting stronger operational efficiencies and a maturing business model.

 

Smartworks became the first listed flex-office operator in India to surpass the 10 msf portfolio mark and led the sector with year-on-year (YoY) revenue growth of 45 per cent.

 

Awfis Space Solutions reported FY26 revenue of ₹1,493 crore, up 24 per cent YoY, while its profit after tax (PAT) increased 66 per cent to ₹71 crore. IndiQube crossed ₹400 crore in Q4 revenue, registering 35.2 per cent YoY growth.

 

The report added that 73 per cent of India's office searches now target flexible workspace, with coworking searches generating nearly five times the volume of traditional leasing queries. Meeting-room searches are up 187 per cent over three years, virtual-office searches up 99 per cent, and day-pass searches up 20 per cent.

 

GCCs accounted for a record 45.5 per cent of all office leasing in Q1 2026, and enterprise clients now contribute the majority of revenue across every listed operator.

 

Beyond the listed players, emerging operators, including BHIVE, DevX, CO-WORKS, and Table Space, continued to show strong operational momentum. BHIVE recently closed a ₹400-crore pre-initial public offering (IPO) round and is targeting a 2027 listing.

 

For FY27, the outlook remains positive, supported by India's growing GCC ecosystem, sustained corporate demand for flexible workplace solutions, and favourable policy and economic tailwinds, the report noted.

 

Industry projections point to more than 2,400 GCCs and $100-110 billion in GCC revenue by the end of the decade, while WeWork India's shareholder letter forecasts that one in three flex seats will be artificial intelligence (AI)-focused by 2030.

 

Additionally, the report said the recent government push towards hybrid and remote working arrangements has further strengthened demand for flex and managed offices, reinforcing India's position as a preferred destination for domestic and multinational enterprises.