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India’s flex space industry is entering a hyper-growth phase and is projected to surge to $9–10 billion by 2028, propelled by the rapid expansion of Global Capability Centres (GCCs), according to a new report by Smartworks and UnearthIQ. The flex space market is currently valued at $3–4 billion.

The report, titled “India’s Next Commercial Real Estate Wave: The Rise of Flex Spaces Fuelled by GCC Growth”, examines the structural shifts underway in India’s commercial real estate market and highlights how the rapid expansion of GCCs is accelerating demand for flexible and managed workspaces across Tier-1 and Tier-2 cities.

Smartworks Coworking Spaces Limited (“Smartworks”) is India’s largest managed office platform by area under management. UnearthIQ is a practitioner-led insights and advisory firm that helps organisations build, scale, and optimise their Global Capability Centres.

As GCCs are expected to require 160–200 million sq. ft. of office space by 2030, the study finds that flex workspaces will capture 65–80 million sq. ft. of this demand, reflecting a decisive enterprise shift towards asset-light, OPEX-led models. This transition is reinforced by footprint shifts towards talent hubs and the growing mid-tier IT demand for agile, scalable workspaces.

India’s 1,850+ GCCs employ nearly 2.2 million professionals and are expanding rapidly, adding 80,000–120,000 seats annually and creating a $170–254 million annual opportunity for workspace operators.

“GCCs are no longer looking for just offices — they’re seeking scalable, intelligent, experience-first environments that help them innovate faster and operate globally. Smartworks is deeply committed to enabling this transformation across Tier-1 and Tier-2 markets through our SmartVantage platform, which is purpose-built to support GCCs from setup to scale,” said Harsh Binani, Co-Founder, Smartworks.

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

Overall, 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. This growth is fuelled by demand for Grade A offices, e-commerce warehousing, institutional capital inflows, and policy catalysts such as the Registration Bill 2025. The $22–26 billion office segment, which accounts for 40–50% of the total market, is being reshaped by GCC and IT/ITeS growth, hybrid work models, and Tier-2 expansion. Within this transformation, branded flex spaces have emerged as the fastest-growing category, rapidly outpacing traditional offices.

Flex space operators are rapidly evolving from pure workspace providers into end-to-end GCC-as-a-Service partners, offering a unified stack of solutions that includes fit-outs, talent support, compliance, and operational enablement. By consolidating these value-added services under a single platform, they simplify setup and accelerate time-to-market for GCCs.