India’s Flex Office Sector eyes $10 Billion Valuation by 2028: ANAROCK

New Delhi, April 7, 2026: India’s flexible workspace sector has crossed the 100 million square foot milestone, setting the stage for a massive $10 billion valuation by 2028. According to the Q3 FY26 Flex Office Report released by myHQ by ANAROCK, the industry is undergoing a fundamental structural shift, moving away from its early reliance on startups toward a high-margin, enterprise-led model that has pushed multiple major operators into profitability for the first time.

The report highlights a dramatic transformation in market dynamics, fueled primarily by Global Capability Centres (GCCs), which now account for nearly 40% of new seat leases. This corporate surge has caused average deal sizes to more than double over the last two years, jumping from 25 to 53 seats. Sectors such as Banking, Financial Services, and Insurance (BFSI) are also aggressively expanding their coworking footprints, signaling a newfound trust in the infrastructure and compliance capabilities of flex operators.

Utkarsh Kawatra, Co-Founder & CEO of myHQ by ANAROCK, noted that flex spaces are now outcompeting traditional commercial real estate. “India’s flex office market has crossed a defining threshold. GCCs now account for close to 35-40% of leasing in recent quarters, and average enterprise deal sizes have doubled in two years — these are not incremental shifts, they are structural ones,” Kawatra said. 

“What’s equally significant is that flex operators are no longer just competing with each other; they are competing with conventional commercial real estate, and winning on flexibility, speed, and capital efficiency. The financial proof is finally here too — multiple listed operators turned profitable in the same quarter for the first time, with margins expanding across the board. Yes, global macro volatility warrants watching, but India’s enterprise demand pipelines have remained intact through prior cycles of uncertainty. With more listings on the horizon and consolidation accelerating in Tier-2 markets, the industry is entering its most consequential phase yet. India crossing 100 MSF of flex stock in 2026 isn’t the peak of this story — it’s the foundation for what gets built next,” he added.

Supply-side growth remains robust as operators scale via large-format campus developments and expansion into Tier-2 cities like Ahmedabad, Kochi, and Indore. A standout transaction in this space includes DevX signing a 27-storey tower deal in Ahmedabad valued at ₹850 Cr in rentals, representing one of the largest single-property deals in the sector’s history. Key micromarkets such as Bengaluru’s Sarjapur and Hyderabad’s Kokapet continue to lead the demand, while operators are simultaneously diversifying their revenue streams through on-demand offerings like Executive Day Passes and value-added services (VAS) including IT and F&B, which now contribute up to 16% of total revenues for top players.

The fiscal health of the industry reached a landmark “tipping point” in Q3 FY26, as four out of the five listed players—WeWork India, Smartworks, Awfis, and EFC—all posted simultaneous net profits. EFC recorded the highest absolute Profit After Tax (PAT) for the quarter in its flex leasing segment, while Smartworks saw the sector’s widest EBITDA margin expansion at 490 basis points. This shift toward “profitability-led expansion” is attracting increased institutional participation and a growing pipeline of Initial Public Offerings (IPOs).

While the report acknowledges potential risks, such as global geopolitical developments and AI-led shifts in demand patterns, the overarching sentiment remains bullish. With improving utilization rates and a move toward valuing companies on actual profitability rather than just EBITDA, the Indian flex office sector is positioning itself as a resilient, hybrid work hub capable of weathering global economic uncertainty.