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India’s commercial real estate sector is witnessing a structural shift as enterprises increasingly adopt flexible and managed workspace models over conventional long-term office ownership and leasing structures. According to industry reports cited by CBRE and Knight Frank, flexible workspace stock in India has crossed 100 million sq ft, expanding rapidly since 2020 as corporates, Global Capability Centres (GCCs) and large enterprises seek operational agility and capital efficiency. Sameer Singh, COO of 91Springboard, stated that commercial real estate is increasingly being viewed as infrastructure that supports business growth rather than a static asset. Enterprises are also shifting towards workspace-as-a-service models that offer scalability, managed operations and hybrid work-compatible environments. The trend is being supported by rising enterprise demand for flexible portfolios, technology-enabled offices and reduced long-term capital exposure across key urban office markets.
India’s commercial real estate market is undergoing a significant transition as enterprises increasingly move away from traditional office ownership and long-term leasing models towards flexible and managed workspace solutions designed around operational agility and scalability. Advertisement
According to industry observations shared by Sameer Singh, COO of 91Springboard, commercial real estate is no longer being viewed primarily as a symbol of permanence or scale, but as business infrastructure aligned with growth, workforce flexibility and capital efficiency.
The shift is reflected in data from CBRE’s 2026 Flex-plosion report, which noted that flexible workspace stock across India has crossed 100 million sq ft, nearly tripling since 2020 at a compound annual growth rate exceeding 23 per cent. The report further stated that more than 55 per cent of occupiers already use flexible office formats, while nearly 65 per cent are expected to adopt such spaces by 2027.
Industry stakeholders indicated that the demand is increasingly being driven by large enterprises and Global Capability Centres rather than only startups or small businesses. According to Knight Frank’s Flex Space Occupier Intelligence 2026 report, large enterprises currently account for 72 per cent of India’s total flexible seat absorption, compared to 18 per cent from SMEs and 10 per cent from startups.
The changing market dynamics are also altering the role of workspace operators. Managed office providers are increasingly functioning as operational partners offering technology-enabled, service-led workspace solutions instead of acting solely as landlords. Enterprises are now prioritising operational reliability, scalability, integrated services and standardised workplace experiences across multiple locations.
The report highlighted that flexible commercial real estate portfolios allow occupiers to scale office space according to business requirements without committing to long-term fixed infrastructure costs. This is becoming particularly relevant for GCCs and expanding corporates entering new cities or consolidating operations across multiple markets.
Industry experts stated that the asset-light nature of flexible workspace models is emerging as a key attraction for corporate occupiers. Under managed workspace structures, businesses are able to reduce upfront capital expenditure on fit-outs, technology and office infrastructure while shifting towards operational expenditure-led occupancy models.
The sector has also gained momentum alongside the rise of hybrid work practices. Enterprises are increasingly seeking workplaces designed around collaboration, employee wellbeing, productivity and flexible occupancy patterns rather than conventional desk-heavy layouts.
Modern managed office developments are now incorporating collaboration zones, wellness-oriented infrastructure, breakout spaces and technology-enabled work environments tailored to evolving employee preferences and hybrid work requirements.
According to industry estimates cited in the report, India’s flexible workspace segment recorded growth at a compound annual rate of nearly 30 per cent between 2017 and 2025, substantially outpacing broader office market growth during the same period.
Market participants stated that commercial real estate portfolios are increasingly being evaluated on the basis of operational outcomes, scalability and workforce alignment rather than ownership alone, reflecting a broader transformation in enterprise real estate strategy across India’s office sector.
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