India’s flexible workspace market which is largely driven by co-working set ups alongside Global Capacity Centres is projected to grow nearly threefold to USD 9-10 billion by 2028, according to a joint report published by Smartworks Coworking Spaces Limited and UnearthIQ earlier today.
Titled “India’s Next Commercial Real Estate Wave: The Rise of Flex Spaces Fueled by GCC Growth,” the report focuses on a larger structural shift in India’s commercial real estate sector, where enterprises across industries are seen moving toward asset-light, operational expenditure-led office models.
Big commercial real estate opportunity
As per the report, India’s commercial real estate market size by economic activity which is presently the fourth largest market globally is on course to reach a valuation of USD 120-130 billion by 2030 from a valuation of USD 50-60 billion today.
The analysis undertaken by Smarteworks Co. places a large bet on the expansion of Global Capability Centers (GCCs) in India which has been primarily driving the demand for flexible and managed workspaces across Tier-1 and Tier-2 cities.
Global Capability Centres (GCCs) are offshore or near-shore centres set up by multinational companies to handle critical business functions such as technology development, engineering, data analytics, finance, R&D, cybersecurity and operations.
Unlike traditional outsourcing units, GCCs are captive centres, meaning they are fully owned and operated by the parent company.
India’s GCC ecosystem employs about 2.2 million professionals and is adding 80,000-120,000 seats annually, translating into an annual revenue opportunity of USD 170-254 million for workspace operators.
Rise of flex spaces
The report estimates that GCCs will require 160-200 million sq. ft. of office space by 2030, with flexible and managed workspaces accounting for 65-80 million sq. ft., or nearly half of this demand.
Flex spaces, or flexible workspaces, are office spaces that allow companies to scale up or down quickly without committing to long-term leases.
Unlike traditional offices that require multi-year lock-ins, flex spaces operate on shorter, more adaptable contracts and are typically fully serviced.
The report published by Smartworks co and UnearthIQ back their projections by citing surging demand for Grade A offices, e-commerce warehousing, institutional capital inflows, and policy catalysts like the Registration Bill 2025.
The bill seeks to digitise land and property registration, reduce manual processes, and improve transparency in real estate transactions and is yet to be passed by the parliament.
“The USD 22-26 billion office segment, which forms 40-50% of the total market, is being reshaped by GCC and IT/ITeS growth, hybrid work models, and Tier-2 expansion. Within this shift, branded flex spaces have emerged as the fastest-growing category, rapidly outpacing traditional offices,” the report concluded.
