Flex Space Leasing Jumps 77% in Q1 2026, Reaching 21% Market Share
India's office market maintained its strong momentum in the first quarter of 2026, driven by robust occupier demand, expanding global capability centers (GCCs), and rising adoption of flexible workspaces.
Key Highlights:
- Flex space leasing surged 77% year-on-year to 3.9 million sq ft in Q1 2026, taking its share in overall office leasing to 21%.
- Total office leasing across the top seven cities stood at 18.3 million sq ft during the quarter, marking a 15% annual increase.
- Flex spaces are expected to account for 20-25% of total office leasing in 2026, with annual absorption projected at 15-18 million sq ft.
Why Flex Spaces Are Growing
According to real estate consultant Colliers, occupiers are increasingly adding flex spaces to their portfolios for scalability, cost efficiency, risk mitigation, and hybrid work enablement.
Demand has been particularly strong from enterprises and GCCs seeking ready-to-move, managed office environments.
Market Outlook For 2026
Colliers expects India's total flex stock to reach 85-90 million sq ft by end-2026 and cross 100 million sq ft in 2027.
Smartworks Crosses 10 Million Sq Ft
Managed office platform Smartworks recently said it has crossed 10 million sq ft of operational portfolio, becoming the first listed flexible workspace provider in India to reach the milestone.
Neetish Sarda, founder and Managing Director of Smartworks, said the milestone reflects a structural shift in India's office market as enterprise demand moves towards managed, campus-led workspace solutions.
"This milestone reflects the structural shift underway in India's office market, where enterprise demand is moving towards managed, campus-led solutions that offer scale, consistency, and long-term visibility. As an infrastructure partner to enterprises and GCCs, we enable multi-city expansion with standardised delivery, predictable execution, and consistency of experience."
Neetish Sarda, Founder and Managing Director, Smartworks
Industry Insights
- James Thomas, Co-founder and Director (Marketing) at SpazeOne: "The growth in leasing underscores sustained demand driven by enterprise expansion, GCC activity, and the growing preference for flexible, scalable solutions."
- Shesh Rao Paplikar, Founder and CEO of BHIVE Workspace: "Enterprises and GCCs are no longer just leasing space; they want managed, ready-to-operate environments where their teams can be productive from Day 1."
- Ashish Sharma, AVP Operations at Brahma Group: "This growth is being driven by expansion across technology, flexible workspaces, and Global Capability Centers. As a developer, we see this as a reaffirmation of the demand for high-quality, future-ready office spaces."