Banks and financial institutions are emerging as major drivers of India’s coworking boom, doubling their flexible office footprint since 2023 and surpassing startups in new space absorption. The shift marks a fundamental change in the country’s office market as large corporates turn to managed spaces for agility, compliance, and scalability.
According to a recent market report, the banking, financial services, and insurance (BFSI) sector now contributes about 10 percent of total flexible workspace demand. The report highlights that the average number of flexible seats requested by BFSI occupiers has risen sharply to 53 in 2025 from 25 in 2023, reflecting a compound annual growth rate of 46 percent.
“Flexible workspace has moved from cost optimisation to a strategic essential,” said Utkarsh Kawatra, chief executive officer and co-founder of a major flex space provider. He added that corporate deal sizes have expanded, with average space requirements reaching around 63,000 square feet in 2024, as companies prioritise speed, flexibility, and scalability in their real estate strategies.
“As India crosses 100 million square feet next year, we are building the infrastructure for how modern India will work and grow,” Kawatra said.
Data shows that while the technology sector continues to lead flexible workspace leasing with about 48 percent share, engineering and manufacturing follow at 17 percent, BFSI at 10 percent, and professional services at 6 percent. In India’s top nine cities, BFSI now accounts for 19 percent of flexible space absorption, behind technology occupiers but ahead of several other sectors.
Further reports reveal that BFSI firms made up 11 percent of gross leasing in the second quarter of 2025, while flexible space operators contributed 18 percent. Within the Global Capability Centres segment, BFSI and manufacturing together accounted for 55.6 percent of first-half leasing volumes.
Industry analysts see this as a structural shift. Financial institutions that once relied on traditional office towers are now embracing flexible spaces to manage costs and support hybrid work models.
Forecasts indicate that flexible office supply in non-SEZ commercial buildings will more than double to between 12.5 and 13.5 percent by FY2027, reaching about 125 million square feet across major cities. Enterprise clients now represent over half of the market by value, with corporates and multinationals generating higher revenue due to larger and longer leases.
“The flexible office sector has transitioned from alternative to essential,” Kawatra said. A single BFSI lease can yield five to ten times the annual revenue of several startup clients combined, underscoring the changing economics of India’s coworking landscape.
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