Indian Corporates Drive Next Phase of Workspace Growth as Flex Demand Reaches Record High: myHQ
New Delhi, October 27, 2026: Indian corporates accounted for a record 23.4% of flexible office space demand in 2026, up from 21.9% in 2025, according to the India’s Changing Face of Flex report released by myHQ in a press release.
The report highlights that domestic companies have surpassed small and medium enterprises (SMEs) to become the second-largest demand segment behind startups, which hold a 39.2% share. The average space requirement for Indian corporates more than doubled from 25 seats in 2023 to 55 seats in 2026. Conversely, startup space requirements shrank from an average of 22 seats in 2023 to 13 seats in 2026, driven by artificial intelligence enabling leaner operational teams. Demand from multinational corporations (MNCs) and global capability centers (GCCs) stabilized at 14.6%.
Sectoral trends show significant movement in the Banking, Financial Services, and Insurance (BFSI) industry. BFSI’s share of flexible workspace demand grew 2.7 times from 4.5% in 2023 to 12.2% in 2026, advancing it from the ninth to the second-largest contributing sector. The IT/ITeS sector remains the largest contributor at 43.9%, though its share declined from a peak of 44.8% in 2025 due to technological efficiencies and slower tech hiring. Together, IT/ITeS, BFSI, and Consulting accounted for 67.7% of total market demand.
Utkarsh Kawatra, Co-Founder & CEO, myHQ, said, “Flex in India is entering a more mature phase. Three years ago, a corporate and a startup came to us asking for almost the same office, 25 seats versus 22. Today it is 55 versus 13. Indian corporates are making flex part of how they plan their real estate, and we expect them to drive the next phase of flex growth. At the same time, AI is letting startups build with leaner teams, and BFSI rising from ninth to second tells you flex is no longer just a tech-and-startup product. It is mainstream.”
The findings are derived from myHQ demand data representing over 20,000 requirement submissions across India’s top six office markets—Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad, and Chennai—tracked between January and September from 2023 through 2026.
