India’s flex office space segment likely to touch $9–10 billion by 2028, driven by GCC demand: Report

India’s flexible workspace segment is projected to grow to $9–10 billion by 2028, nearly tripling from the current $3–4 billion, driven largely by the rapid expansion of Global Capability Centres (GCCs), according to a joint report by Smartworks Coworking Spaces and UnearthIQ.

Titled India’s Next Commercial Real Estate Wave: The Rise of Flex Spaces Fueled by GCC Growth, the report said GCCs are expected to generate demand for 160–200 million sq ft of office space by 2030, of which flex and managed workspaces could capture 65–80 million sq ft, or nearly half of incremental demand.

GCCs, also known as global in-house centres or captives, are offshore units of large multinationals that handle technology, analytics, operations and other strategic functions.

Also Read: Here’s why Hyderabad is outpacing Bengaluru in attracting Global Capability Centres

The study highlighted a structural shift in occupier preferences, with enterprises increasingly favouring asset-light, opex-led real estate models over traditional long-term leases. This trend is being reinforced by companies expanding into new talent hubs across Tier-1 and Tier-2 cities and by mid-tier IT firms seeking scalable, plug-and-play workspaces.

India is currently home to more than 1,850 GCCs employing about 2.2 million professionals. The report estimates that these centres are adding 80,000–120,000 seats every year, translating into a $170–254 million annual opportunity for workspace operators.

“GCCs are no longer looking for just offices; they are seeking scalable, intelligent, experience-first environments,” Harsh Binani, co-founder of Smartworks, said. He pointed out that the company is focusing on enabling GCC growth across major and emerging markets through its managed office platform.

Also Read: GCCs power India’s innovation push, poised to touch $105 billion by 2030

Gaurav Vasu, co-founder and CEO of UnearthIQ, said, ““The real inflection point for GCCs has been recognizing that success depends more on experience-first workplaces than traditional infrastructure models. Flex operators who can combine scale with technology, near-shore reach, and end-to-end enablement will define the next decade of GCC growth.”

The report also said that India’s commercial real estate market size by economic activity, valued at $50–60 billion and the fourth-largest globally, is on course to reach $120–130 billion by 2030, fueled by demand for Grade A offices, e-commerce warehousing, institutional capital inflows, and policy catalysts like the Registration Bill 2025. The office segment, valued at $22–26 billion and accounting for nearly half of the market, is being reshaped by GCC and IT/ITeS growth, hybrid work models, and rising interest in Tier-2 cities.

“Within this shift, branded flex spaces have emerged as the fastest-growing category, rapidly outpacing traditional offices,” the report said.