+
PE Investments in Flex Office Spaces Reach USD 30.9 mn in H1 2026
ECONOMY & POLICY

PE Investments in Flex Office Spaces Reach USD 30.9 mn in H1 2026

Private equity investments in India’s flexible office space sector reached USD 30.9 mn across two deals in H1 2026, exceeding the USD 24.3 mn deployed through four deals during all of 2025, according to Knight Frank India. The figures point to renewed investor interest in a segment that has been moving towards larger operators and greater consolidation.

Knight Frank said investors are assessing enterprise exposure, operating capabilities and scalability as the market develops beyond a period of rapid operator proliferation. The consultancy linked the H1 2026 increase to larger-ticket transactions and said it could indicate a renewed acceleration in capital deployment.

Investment in the sector rose from USD 25.3 mn in 2017 to USD 112.3 mn in 2019, before the pandemic disrupted the cycle. Inflows later reached USD 594.5 mn across nine deals in 2022, the highest annual level during the period, before moderating as the market shifted towards consolidation. Flex transactions also increased from 2.2 mn square feet in 2017 to 18.6 mn square feet in 2025, representing a 30 per cent compound annual growth rate.

Flex space accounted for 24 per cent of office absorption across the leading eight Indian cities in H1 2026, compared with 4 per cent in H1 2017. Leasing stood at 11.4 mn square feet during the first half, led by Bengaluru with 2.9 mn square feet. Pune and the National Capital Region recorded 2.2 mn square feet each, while Hyderabad accounted for 2 mn square feet.

Large enterprises represented 72 per cent of seats in flex spaces, while Global Capability Centres contributed 52 per cent of demand. Knight Frank said the growing participation of large organisations and Global Capability Centres, alongside rising adoption of flexible arrangements, indicated that flex space was becoming a structural component of India’s office market. The shift allows businesses to align real estate capacity more closely with changing growth requirements and location needs.

Private equity investments in India’s flexible office space sector reached USD 30.9 mn across two deals in H1 2026, exceeding the USD 24.3 mn deployed through four deals during all of 2025, according to Knight Frank India. The figures point to renewed investor interest in a segment that has been moving towards larger operators and greater consolidation. Knight Frank said investors are assessing enterprise exposure, operating capabilities and scalability as the market develops beyond a period of rapid operator proliferation. The consultancy linked the H1 2026 increase to larger-ticket transactions and said it could indicate a renewed acceleration in capital deployment. Investment in the sector rose from USD 25.3 mn in 2017 to USD 112.3 mn in 2019, before the pandemic disrupted the cycle. Inflows later reached USD 594.5 mn across nine deals in 2022, the highest annual level during the period, before moderating as the market shifted towards consolidation. Flex transactions also increased from 2.2 mn square feet in 2017 to 18.6 mn square feet in 2025, representing a 30 per cent compound annual growth rate. Flex space accounted for 24 per cent of office absorption across the leading eight Indian cities in H1 2026, compared with 4 per cent in H1 2017. Leasing stood at 11.4 mn square feet during the first half, led by Bengaluru with 2.9 mn square feet. Pune and the National Capital Region recorded 2.2 mn square feet each, while Hyderabad accounted for 2 mn square feet. Large enterprises represented 72 per cent of seats in flex spaces, while Global Capability Centres contributed 52 per cent of demand. Knight Frank said the growing participation of large organisations and Global Capability Centres, alongside rising adoption of flexible arrangements, indicated that flex space was becoming a structural component of India’s office market. The shift allows businesses to align real estate capacity more closely with changing growth requirements and location needs.

Related Stories

Gold Stories

Next Story
Technology

Onward Technologies Renews Rs. 444.6 mn Digital Services Contract

Onward Technologies has renewed a multi-year Managed Digital Services contract, with an expanded scope valued at Rs. 444.6 mn over the contract tenure. The engagement is with one of the world’s leading manufacturers of construction and mining equipment and will run from August 2026 to August 2029, according to a regulatory filing dated September 21, 2026. The renewed contract represents a 72 per cent increase in value compared with the previous agreement. The expansion reflects the customer’s continued confidence in Onward Technologies’ delivery capabilities, digital engineering expertis..

Next Story
Real Estate

Ashiana Housing to Invest Rs. 10 bn in FY27 Land Acquisition

Ashiana Housing plans to invest around Rs. 10 bn in land acquisition during FY27 as it expands its housing and senior living businesses across major markets. The company has sufficient cash to fund the investment, managing director Vishal Gupta said in comments to PTI. The real estate developer is seeking land for regular group housing and senior living projects in Delhi-NCR, Rajasthan, Maharashtra and Tamil Nadu. Acquisitions will be made through outright purchases as well as joint development arrangements with landowners. The company expects sales bookings in FY27 to remain broadly similar t..

Next Story
Infrastructure Urban

Andhra SIPB Approves 28 Projects Worth Rs. 221.78 bn

The 21st State Investment Promotion Board (SIPB) meeting, chaired by Andhra Pradesh Chief Minister Nara Chandrababu Naidu at the Secretariat in Velagapudi, approved 28 industrial proposals involving Rs. 221.78 bn in investment. The projects are expected to generate employment for 19,739 people across energy, information technology and communications, food processing, manufacturing and tourism. Across 21 SIPB meetings, the State has approved 387 projects representing a potential investment of Rs. 14.05 tn and employment opportunities for 1,079,000 people. Naidu instructed officials to ensure th..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code