GCCs And BFSI Power India’s Flexible Workspace Surge

Larger deal sizes, GCC expansion, and demand from sectors like BFSI and technology are accelerating growth across key markets.

Excerpts from an interview with Utkarsh Kawatra, CEO and Co-Founder, myHQ by ANAROCK

1. Give us a brief overview of the report

The myHQ Industry Report 2025 looks at how the flexible workspace sector in India is evolving and what is driving demand across cities and industries. One clear takeaway is how widely the model is now being adopted by larger companies. A few years ago, flexible offices were largely associated with startups and small teams, but today we are seeing enterprises and multinational firms using them as part of their mainstream real estate strategy.

The report also points to a steady rise in larger transactions, with deal sizes growing significantly over the past year. Demand is coming from sectors such as BFSI and technology, and global capability centres are playing an increasingly important role in shaping the market across major Indian cities.

2. India is now among the fastest-growing flex office markets globally. What key factors have driven this rapid growth in the past few years?

A big part of this comes down to how companies now approach office space. Many organisations prefer flexibility in their real estate commitments, especially when hiring plans and team structures can change quickly. Flexible workspaces allow them to expand without committing to long lease cycles or large upfront investments.

Another factor is the way companies are organising their workplaces. Instead of relying only on a central headquarters, many are operating from multiple locations closer to where employees live. Flex offices make this easier because the infrastructure is already in place and teams can move in quickly.

There is also a practical advantage. Companies do not have to spend time managing fit-outs, facilities or day-to-day office operations. The operator takes care of that, which allows organisations to focus on their teams and business.

3. Your report notes that deal sizes grew by 63% in 2025. What is prompting corporates to opt for larger flex office spaces now?

One reason is that infrastructure quality has improved significantly. Many operators now provide the kind of security, IT infrastructure and compliance standards that large companies expect.

Speed is another important factor. Traditional office leasing can take months before a team is ready to move in. Flexible offices allow companies to start operations much faster, which is particularly useful when expanding into new markets or launching new business units.

4. The BFSI sector has significantly increased its flex adoption. What makes flex spaces particularly attractive to financial institutions today?

The BFSI sector is expanding rapidly, especially in areas like digital banking, fintech, analytics and customer support. These teams often need to be set up quickly and scaled as demand grows. Flexible workspaces allow financial institutions to do exactly that without waiting months for traditional office setups. They also make it easier for companies to open satellite offices in talent-rich locations while maintaining flexibility in their real estate commitments.

5. Cities like Gurugram, Noida, Hyderabad and Bengaluru are emerging as GCC-led flex hubs. What role are global capability centres playing in shaping the flex market?

Global capability centres are becoming a consistent source of demand for flexible workspaces in India. When multinational companies set up or expand GCC operations, flexible offices often provide the fastest way to begin operations. Teams can start working immediately while the company evaluates long-term real estate plans.

In many cases, flex spaces serve as a base while companies hire talent and scale their teams. As multinational firms continue to expand their operations in India, GCC-led demand will likely remain a major contributor to the growth of the flexible workspace sector.

6. South India continues to be a major driver of flex office demand. How do markets like Bengaluru, Hyderabad and Chennai compare in terms of growth and occupier trends?

South India has always been a strong market because of its technology ecosystem and deep talent pool. Bengaluru continues to see the highest demand, largely driven by tech companies, startups and global capability centres. Hyderabad has been growing very quickly as more multinational companies set up operations there. Chennai, on the other hand, is seeing steady demand from sectors like technology services, manufacturing support functions and BFSI. Each city has its own occupier mix, but overall, the region continues to lead in enterprise adoption of flexible workspaces.

7. In Hyderabad specifically, micro-markets such as HITEC City, Madhapur and Gachibowli dominate flex demand. What factors are fueling this concentration and how do you see the city’s flex ecosystem evolving?

HITEC City, Madhapur and Gachibowli have developed into the core business districts of Hyderabad, particularly for technology and multinational companies. Most major IT parks, GCCs, and corporate campuses are located in these areas, so companies prefer to operate within that ecosystem.

Being located within these clusters also helps companies more easily access talent and remain close to industry networks. As Hyderabad continues to attract technology investment and multinational firms expand their operations, these micro-markets are likely to remain the centre of the city’s flexible workspace activity.