India crosses 100 million sq ft flex office led by enterprise demand
India’s flexible office sector crossed the 100 million sq ft mark and ended FY26 on its strongest commercial footing yet, with robust revenue growth, expanding profitability and increasing enterprise adoption, a report said on Friday.
The report from flexible workspace platform myHQ said Global Capability Centres accounted for a record 45.5 per cent of all office leasing in Q1 CY26 and that enterprise clients contributed the majority of revenue across every listed operator.
This shift led the industry from a growth?led model to a profitability?focused phase supported by larger contracts, longer customer tenures, and rising demand for managed workspace solutions.
All five listed operators grew revenue in double digits during the quarter, the report noted.
The sector witnessed continued expansion across major business hubs, with operators adding new centres and large-format campuses while maintaining healthy occupancy levels.
The trend in FY26 indicated a validation of the industry's long-term fundamentals and path to profitability, said Utkarsh Kawatra, co-founder &; CEO, myHQ.
"Global Capability Centres 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," he added.
Revenue growth remained strong across listed flexible workspace companies during both the quarter and the full fiscal year. EBITDA margins improved significantly, reflecting stronger operational efficiencies and a maturing business model.
Around 73 per cent of India's office searches now target flexible workspace, with coworking searches generating nearly five-fold 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, the report noted.
Beyond the listed players, emerging operators also continued to show strong operational momentum.
The outlook remains positive in FY27, supported by India's growing GCC ecosystem, sustained corporate demand for flexible workplace solutions, and favourable policy and economic tailwinds, it added.
