Learn how flexible work and hybrid models are reshaping corporate real estate demands in India. From co-working growth to agile leases and wellness offices, discover trends transforming workplace strategy in 2025.
How Flexible Work Is Reshaping Corporate Real Estate Demands in India
In India’s business hubs, flexible work – hybrid schedules, remote options, co-working – is reshaping corporate real estate demands. Offices are not disappearing, but their role is changing. Companies are rethinking how much space they need, where it should be, and how it is designed.
The rise of hybrid work in India
- 94% of companies want employees in office at least 3 days a week .
- Hybrid, not remote, is the dominant model.
- Employees want flexibility but also value in-person collaboration.
- Long commutes and crowded homes make the office attractive for focus and teamwork.
Key takeaway: The office is now a collaboration hub, not a mandated daily space.
Changing leasing trends
Despite flexibility, office leasing is strong.
| Indicator | Data | Source |
| Gross office leasing 2024 | ~89 million sq. ft. (↑19% YoY) | Cushman & Wakefield |
| Vacancy rate Q4 2024 | 16.5% (↓170 bps YoY) | Cushman & Wakefield |
| Flex workspace share | ~14–15% of leasing | CBRE, Knight Frank |
- Growth is driven by smaller, high-quality offices and flexible solutions.
- Occupiers demand shorter leases, break clauses, and cost efficiency.
- Landlords respond with adaptable terms and tie-ups with co-working providers.
Flexible workspaces and co-working
The fastest growing segment:
- 12.4 million sq. ft. of flex space leased in 2024 (↑57.5% YoY) .
- Share of total office leasing: ~15%.
- Clients: Startups, SMEs, MNCs.
- IT-BPM sector accounts for ~50% of flex seats.
Why flex works:
- Scale up/down easily.
- Convert capital cost → operational cost.
- Ready-to-use offices with enterprise-grade amenities.
- Hub-and-spoke strategies: HQ + satellite flex offices.
Outlook: By 2027, 52% of occupiers plan to have >10% of portfolios in flex space .
Agile leasing strategies
- Core–flex model means keeping a permanent headquarters supported by flexible satellite hubs.
- Hub-and-spoke portfolios decentralise offices across metros and Tier-II cities.
- Flexible clauses:
- Shorter leases (3–5 yrs).
- Expansion/contraction rights.
- Revenue-linked rents.
Office design in the flexible era
Offices are shifting from assigned desks to activity-based layouts.
New features include:
- Hot-desking / booking apps.
- Collaboration zones > cubicles.
- Video-enabled meeting rooms.
- Phone pods for calls.
- Wellness spaces, cafe-style lounges.
- Smart systems: IoT sensors, occupancy data, automated climate control .
Goal: Make the office a magnet, not a mandate.
Decentralisation & new locations
- Satellite offices in suburbs and Tier-II cities reduce commute time.
- Access to new talent pools and lower costs.
- ~75% of occupiers open to Tier-II/III expansion .
- Hub in a primary city + spokes across secondary markets = resilience + agility.
Quality, wellness & sustainability
Flight to quality: Companies prefer Grade-A, green-certified offices with wellness features.
| Priority | Trend | Data |
| Green buildings | 74% of new leasing in H1 2025 | Anarock-Allwork |
| Occupier wellness | 80% see it as critical | Colliers survey |
| Green stock | >1.8 bn sq. ft. certified | IGBC/LEED |
Popular features:
- Natural light, plants, ergonomic furniture.
- Air purification, touchless systems.
- Wellness rooms, on-site childcare.
- EV charging, solar, water recycling.
What this means for businesses
Flexible work demands flexible real estate:
- Reassess portfolio size and structure regularly.
- Blend core offices with flex spaces.
- Prioritise employee experience to attract talent back.
- Invest in green and wellness-oriented offices.
Looking to adapt your office strategy to flexible work?
Explore our future-ready office listings and see how Fairdeal Realtors helps businesses secure on-time, transparent, and scalable offices across India.
FAQs
Q: Is flexible work replacing offices?
A: No. Leasing remains strong (~89m sq. ft. in 2024), but companies want smaller, flexible, higher-quality offices.
Q: Why are co-working spaces booming?
A: They offer scalability, cost control, and ready-to-use facilities. Leasing in flex grew 57.5% in 2024.
Q: What design changes support hybrid work?
A: Hot-desking, collaboration hubs, wellness zones, and video-ready rooms are now standard features.
