Stylework Team
India’s commercial real estate sector is witnessing unprecedented growth, with office space supply reaching record levels across major cities. This surge is fueled by the demand for premium workspace, the rise of flexible workspace providers, and the expansion of IT and global capability centers (GCCs) in India.
According to leading real estate reports, the top eight cities in India collectively added 52.3 million square feet of new office spaces last year. With this momentum, 2025 is expected to see further expansion, making India one of the fastest-growing office space markets in the world.
India’s Office Space Market Growth
Recent data from CBRE, JLL, and Cushman & Wakefield highlights the rapid expansion of office spaces across India’s top business hubs:
Office Space Supply & Flexible Workspace Growth in Major Cities
| City | New Office Space Supply (Million Sq. Ft.) | Flexible Workspace Leasing (Million Sq. Ft.) | Market Highlights |
| Bengaluru | 14 | 3.4 | 28% of total office leasing; Strong demand for premium workspace |
| Hyderabad | 14.5 | 2.1 | 7% YoY increase; Tech companies driving demand |
| Mumbai | 7.3 | 1.9 | 170% surge in office supply; 19% of total leasing |
| Delhi-NCR | 6.9 | 2.3 | 30% YoY growth; Among the best coworking spaces in Delhi |
| Pune | 5.9 | 1.5 | 11% increase; Rapidly growing flex space market |
| Chennai | 2.9 | 1.2 | 57% decline in new supply; Moderate coworking demand |
| Kolkata | 0 | 0.5 | No new completions; Small but growing flex office sector |
Surging Demand for Flexible Workspaces
One of the biggest shifts in India’s commercial real estate landscape is the rise of flexible workspace providers. Companies are embracing hybrid work models, fueling demand for coworking spaces.
Key Flexible Workspace Trends
- The Grade A flexible workspace supply has reached 58 million square feet across the top cities.
- Bengaluru leads with 43% of India’s flexible workspace leasing.
- The best coworking spaces in Delhi and the best coworking space in Bengaluru continue to attract startups, enterprises, and freelancers.
Also Read: Key Trends and Outlook for Commercial Real Estate Sector in 2025
Why India’s Office Space Market is Booming
- Tech & GCC Expansion – Major IT and multinational companies are setting up offices in India, driving demand for premium workspace.
- Flexible Office Adoption – The shift towards hybrid work models has led to a 57.5% YoY growth in coworking space leasing.
- Infrastructure Growth – Business hubs are seeing better connectivity, metro expansions, and improved commercial real estate development.
- Affordable Rentals – Compared to global cities, India’s office spaces remain cost-effective, attracting foreign investors.
What’s Next for India’s Commercial Real Estate?
With a strong pipeline of new office spaces, increasing investments in flexible workspace providers, and the growing appeal of the best coworking spaces in Delhi and Bengaluru, the industry is set for sustained growth in 2025 and beyond.
Businesses seeking premium office spaces will find exciting opportunities in India’s dynamic commercial real estate market.