According to a study published on Tuesday by Anarock Research & Advisory, the Indian office space market has undergone changes: for the first time in nine months (January-September 2026), coworking spaces became the largest consumer of office space, surpassing the IT/ITeS sector. This shift highlights companies' growing preference for flexible workspaces.
Piyush Jain, Managing Director of Commercial Leasing and Consulting at Anarock Group, commented on the report's findings, noting that flexible workspaces complement traditional leasing rather than replace it. He pointed to a decisive change in the structure of office space tenants.
Jain added that large tenants, particularly Global Corporate Centers (GCCs), are forming an increasingly mixed portfolio. They use long-term, customized campuses for core teams and flexible spaces for running pilot projects, accelerating processes, and expansion. Furthermore, many flexible space operators also lease entire buildings under standard terms.
The Anarock report showed that the coworking sector led overall demand, accounting for 26 percent during the period, exceeding the IT/ITeS figure of 25 percent, as well as the Banking, Financial Services, and Insurance (BFSI) sector with a share of 21 percent. Previously, according to Anarock data, IT/ITeS traditionally held the leading position.
Among key segments, coworking and BFSI increased their share of total office space demand, reaching 47 percent of total leases in the first nine months of 2026, compared to 41 percent in the same period last year.
Forecasts and Strategic Significance
Amit Ramani, Chairman and Managing Director of Awfis Space Solutions Ltd, noted that the emergence of coworking as the largest tenant in the last nine months confirms a structural shift. This is due to enterprises and GCCs increasingly focusing on speed to market, capital efficiency, and flexibility.
Ramani emphasized that flexibility is no longer just an alternative option or a tool for startups; it has firmly become part of the corporate growth strategy. Harsh Binani, Co-founder of Smartworks, stated that managed workspaces will play an increasingly strategic role in meeting businesses' real estate needs. He specified that the capability will be determined not only by area but also by the ability to provide scalable, institutional-level workspace infrastructure in different cities.
Ramita Arora, Executive Director in Bengaluru and Head of Flex at Cushman & Wakefield, observed that modern flexible offices can support a business at every stage of its real estate needs—from establishing a presence to scaling teams and managing a long-term portfolio. The firm's report, released on Tuesday, indicated that the supply of flexible offices in India reached 88.7 million square feet in the first half of the year and is projected to exceed 100 million square feet this year, growing nearly to 160 million square feet by 2030.
Moreover, the report states that GCCs and multinational corporations are increasingly using flexible spaces to enter new markets and expand in existing ones. Arora added that with the emergence of new demand sources, including AI-based businesses, the opportunities within the flexible sector are becoming both broader and more resilient.
