PM's WFH push may raise flex, managed workspace demand in the near term

Industry executives say companies are likely to adopt distributed workplace strategies, supporting flex office demand without disrupting India's office leasing momentum

Prime minister Narendra Modi’s work-from-home (WFH) appeal may lead to flex office operators and managed workspace providers witnessing higher demand as companies may adopt agile and distributed workplace strategies.

 

According to real estate industry stakeholders, Modi’s recommendation should be viewed as a short-term response to geopolitical tensions, and oil price pressures, rather than a structural shift in workplace strategy.

 

Utkarsh Kawatra, cofounder and chief executive officer (CEO), myHQ, said that companies are more likely to optimise office usage patterns rather than reduce their real estate footprint.

 

“Flex is the natural shock absorber,” Kawatra said. “It lets enterprises scale up or down, run hub-and-spoke setups closer to where employees live, and avoid locking into long leases when things are uncertain.”

 

According to him, flex leasing touched nearly 4 million square feet (msf) in the first quarter of 2026, rising 77 per cent year-on-year (Y-o-Y) and accounting for roughly one-fourth of total leasing activity.

 

Umesh Uttamchandani, managing director (MD), Dev Accelerator, said occupiers are gradually moving towards hub-and-spoke strategies involving smaller distributed offices rather than large single-location campuses.

 

“We expect occupiers to lean further into distributed footprints placed closer to where employees actually live,” he said.

 

WeWork India also expects demand for distributed workspaces to rise. CEO and MD Karan Virwani said enterprises are increasingly distributing their real estate footprints, not to replace the office, but to make it more accessible.

 

“The future of work isn’t about choosing between the office and home, it is about the right workspace, at the right location, at the right time,” Virwani said.

 

However, some caution is emerging in expansion decisions. One analyst, whose firm was evaluating additional office space, said the company has delayed expansion plans temporarily.

 

“The expansion market would be impacted. We are in a wait-and-watch mode now until clarity emerges,” the analyst said.

 

A prominent NCR-based developer also downplayed concerns, stating that most of their tenants cannot afford WFH, considering the nature of their businesses. “This is very short-term. As we saw during Covid, people initially started to WFH, but within a year, things were back to normal. So, it does not have a significant impact.”

 

“Even a short-term shift toward remote and hybrid work has a silver lining. Flexible workspace operators and managed office providers have already been clocking strong growth and will benefit from this as corporates look for agile, plug-and-play solutions that allow them to scale either way without long-term lease commitments," said Anuj Puri, chairman, Anarock group.

 

Modi’s WFH recommendation comes at a time when India’s office market is witnessing strong leasing momentum, driven by Global Capability Centres (GCCs), financial services firms, and domestic corporates.

 

According to Dr Amit Goenka, chairman and MD of Nisus Finance, India’s office market ended 2025 with a third consecutive record year of leasing at around 82 msf, while vacancy declined to 10.8 per cent. GCCs accounted for nearly 45 per cent of total demand.

 

“The PM’s WFH appeal is a fuel-conservation message linked to the West Asia oil crisis, not a structural workplace shift,” Goenka said, adding that GCCs still require physical campuses for compliance and engineering functions.

 

Sharad Mittal, founder and CEO of Arnya Real Estates Fund Advisors, said the office market today is fundamentally different from the pandemic years of 2020 and 2021.

 

“Most large occupiers have already institutionalised hybrid working models with structured attendance frameworks, making the sector far less sensitive to WFH-related commentary,” he said. Premium grade A assets in established micro-markets are expected to remain resilient because vacancy levels remain tight, Mittal added.

 

Executives said leasing activity, occupancies, and rental escalations in prime office markets are still being driven more by supply constraints and the flight to quality than by temporary WFH advisories.

 

Puri noted that long-term office demand continues to be anchored by workforce expansion, corporate growth, and India’s rise as a global services hub. “The fundamentals remain firmly intact,” he added. 

Workways

• Flex leasing touched nearly 4 msf in the first quarter of 2026, up 77% Y-o-Y
• Companies more likely to optimise office usage patterns 
• Occupiers expected to lean further into distributed footprints closer to where employees live 
• WFH appeal not about structural shift in workplace strategy