India’s flexible office sector has entered a new phase of growth, with rising enterprise demand from Global Capability Centers (GCCs), expanding office supply and stronger financial performance across major operators, according to the myHQ by ANAROCK Q3 FY26 Report.
The report says the sector has now crossed the 100 million sq ft mark. This reflects both rapid expansion and growing acceptance of flexible workspaces as a long-term business solution.
“Corporate deal sizes have risen sharply as organisations place greater value on speed, flexibility, and scalability. As India crosses the 100 million sq ft mark, we're building the infrastructure for how modern India will work and grow,” said Utkarsh Kawatra, Co-Founder and CEO, myHQ by ANAROCK, in the quarterly report.
A key shift highlighted in the report is the rise of enterprise leasing. GCCs now account for a significant share of leasing activity, with the future outlook section placing GCC's share of leasing at 39% in Q4 CY25. The report also notes that the average enterprise deal size has doubled from 25 seats to 53 seats between 2023 and 2025.
This demand has been matched by continued expansion from major operators. In Q3 FY26, WeWork India operated 1,21,638 desks, while Smartworks managed 2,09,000 desks and IndiQube 1,72,863 desks, according to the report. Occupancy remained strong for most operators, with WeWork India, Smartworks and IndiQube all reporting around 84% utilisation.
The sector’s financial performance also showed signs of improvement. The report notes that multiple listed operators reported profits in the same quarter for the first time. WeWork India posted a net profit of Rs 16.8 crore, while Smartworks reported Rs 1.2 crore profit, marking what the report describes as a turning point for the industry.
The quarterly report adds that three out of four listed operators expanded EBITDA margins year-on-year, with Smartworks recording the widest increase at 490 basis points.
Looking ahead, the report projects continued demand from GCCs, AI-led businesses and large enterprises. It states that India’s flex office market is expected to reach a $9–10 billion valuation by 2028, with larger firms likely to acquire smaller operators, especially in Tier-2 cities.