India ranks first globally in maturity index of flexible office spaces market: C&W

New Delhi, Sep 19 (PTI) India's co-working space market has topped globally in maturity index, beating the UK, France, US, Japan and Singapore markets, on the back of various factors, including rising demand for flexible and managed office spaces, according to Cushman & Wakefield.

On Friday, real estate consultant Cushman & Wakefield (C&W) released a report titled 'Global Trends in Flexible Office 2025'.

"Flexible office space as a component of overall office space varies in maturity across global markets. Some mature office markets do not have a significant presence of flexible office space, while some emerging office markets have developed a strong presence of flexible office providers," the report said.

The consultant noted that India has stood out for the strength and maturity of its flexible workspace market.

"Scoring a perfect 100 on Cushman & Wakefield's maturity index, India has outpaced its global peers with well-established office markets, including the United Kingdom at 98 per cent, France at 97 per cent, the United States at 81 per cent, and both Japan and Singapore at 77 per cent," C&W said.

The maturity score has been calculated by a comprehensive assessment of key metrics, including flexible inventory as a percentage of total office space, the number of flexible providers present in the market, leasing activity of flexible providers, and the presence of emerging flexible agreement structures.

At present, India is the largest flexible office market in APAC, with 79.7 million sq ft of stock across the top eight cities as of June 2025.

The total portfolio of co-working operators is expected to reach around 85 million sq ft by December this year and surpass 100 million sq ft by 2026.

Ramita Arora, Managing Director Bengaluru and Head - Flex, India, Cushman & Wakefield, said, "India's flexible office sector is widely recognised as a global pacesetter. What sets it apart is the maturity, diversity of operators, and its ability to pivot with demand - qualities that many Western markets are still developing." Commenting on the report, co-working space providers highlighted that the demand for managed workspaces has risen sharply post-COVID pandemic.

Listed entity Smartworks founder and MD Neetish Sarda said India's commercial office stock is expanding at an unprecedented pace, with flexible workspaces becoming integral to modern enterprise culture.

"This momentum, fuelled by corporates adopting Core + Flex models, reflects the need for capital efficiency, workplace agility, and sustainability without compromising the employee experience," he added.

Shesh Rao Paplikar, Founder & CEO of BHIVE Workspace, said India's flexible office market is growing quickly, with demand coming from both large enterprises and mid-sized GCCs.

"Companies are looking for offices that can scale easily, offer a better experience for their people, and simplify day-to-day operations," he added.

Manas Mehrotra, Founder of 315Work Avenue, highlighted that the co-working spaces are becoming a major force in reshaping the commercial real estate landscape.

"The demand has gained greater traction with corporates and MNCs continuing to make a beeline to coworking centres that have emerged as strong centres of growth. This trend is also being significantly fuelled by the expansion of Global Capability Centers (GCCs)," he said.

Aashit Verma, Founder of Hanto Workspace, noted that the demand for co-working spaces is supported by strong economic growth, which is driving both domestic and international businesses to adopt cost-optimised solutions for their real estate growth.

Echoing similar views, SpazeOne founder James Thomas said there is a growing demand for flexible, high-quality workspaces.

"With India's flexible office inventory projected to cross 100 million sq ft by 2026, we see this as a strong signal that businesses of all sizes value agility and collaborative environments," he added.

The C&W report also mentioned that four operators have already gone public, while more IPOs are expected, signalling heightened transparency, governance, and investor confidence.

"The next 3-5 years are expected to bring consolidation, with leading players cementing their market share while niche and regional operators continue to serve specialised requirements," the consultant said. PTI MJH MJH SHW