Flex Space Growth Set to Trigger IPO Wave

Corporate groups drive demand for cost-effective Grade-A workspaces

- PRACHI PISAL

India's flexible (flex) office segment, having breached pre-pandemic levels, is thriving as corporate groups, startups, multinational corporations, and global capability centers (GCCs) expand in India, seeking low-capital yet Grade-A plug-and-play facilities.

In the first quarter (Q1) of 2025, the flex office segment continued to grow, with flex space leasing rising by 22 percent to 2.2 million square feet (msf), according to Colliers. Delhi-NCR, Pune, and Bengaluru accounted for 80 percent of flex space uptake. JLL estimates that the operational footprint of flex space across India's top seven cities will cross 100 msf by 2026, up from over 74 msf.

On the back of this growth potential, several flex operators—including Smartworks Coworking Space, Tablespace, IndiQube, BHIVE Workspace, Simpliwork, and WeWork—are gearing up for their initial public offerings (IPOs), reflecting the segment's maturity.

"With a robust pipeline of IPOs, strong occupancy rates, and considerable private equity backing, the flex space has solidified its position as a long-term player in India's commercial real estate," said Samantak Das, chief economist and head of research and real estate intelligence services, India, JLL.