India’s real estate sector – boosted by a strong economy – has emerged as a key factor in the country’s growth. It is the second largest employer after agriculture, with an 18% proportion of national employment.
The real estate industry is expected to reach $1.3 trillion by 2034 and $5.17 trillion by 2047. The current market size of Indian real estate is Rs 24 lakh crore, divided into residential and commercial segments. Over the past year, the commercial real estate segment has seen unprecedented growth. At its core, Flex Workspaces is ahead of it.
In today’s scenario, where there is a new version of everything, why is there a shortage of workstations?
Flex workspaces are specifically positioned to increase sustainability in India’s commercial real estate sector by using a flexible and shared environment that maximizes space utilization while reducing resource consumption. Also known as coworking spaces, they use a shared economy model to reduce demand for individual workplaces, reducing overall energy use, waste, and carbon emissions in the real estate industry.
Hybrid work models, smart technologies, and a focus on sustainability are poised to redefine the way we work and use office spaces.
The hybrid work model: permanent change
Hybrid working, where employees split time between office and remote work, is set to become the norm. By 2025, around 70% of Indian businesses are expected to adopt this flexible model.
This shift will reduce office space requirements, increasing demand for coworking spaces — expected to account for 15-20% of total office space demand. These spaces offer flexibility and convenience, allowing employees to work from locations closer to home, reducing commute time and promoting well-being.
Smart office and technology integration
Technology will continue to play a pivotal role in the evolution of office spaces. Smart office solutions powered by IoT will increase energy efficiency, improve security and boost overall functionality.
By 2025, the integration of smart features—AI-powered temperature control, occupancy sensors, and smart lighting—will be the norm. Additionally, virtual and augmented reality (VR/AR) will transform collaboration by facilitating immersive meetings and real-time design sessions, bridging the gap between remote and in-office teams. AI will revolutionize office management by optimizing space utilization and improving building operations.
Sustainability: A major focus
Sustainability will be a driving force in the design of future office spaces. As energy-efficient technologies and renewable energy sources such as solar panels become the norm, office buildings in India will focus on reducing their carbon footprints.
Green certifications, such as LEED and IGBC, will be increasingly sought after as companies align with sustainable business practices. By 2025, nearly 40% of office spaces in India are expected to be green-certified, integrating biophilic design elements such as natural light and plants to enhance employee well-being and productivity.
Health and wellness focused design
The pandemic brought a focus on health and wellness to office design. The offices of the future will prioritize air quality, natural light, and ergonomic furniture to create a healthy work environment. Amenities such as wellness rooms, outdoor spaces and fitness areas will become standard to promote mental and physical health.
In fact, 30-40% of employees in India now expect office spaces to offer wellness facilities as businesses recognize the link between employee health and productivity.
The rise of mixed-use development
The growing trend of mixed-use developments, where commercial, residential, and leisure spaces coexist, will dominate urban office spaces. These developments create “live-work-play” environments that reduce commute times and enhance a sense of community.
A significant portion of urban office spaces in major cities such as Mumbai and Bengaluru will be part of mixed-use complexes by 2025, integrating workspaces with lifestyle amenities to improve convenience and work-life balance.
Flexible and collaborative office layout
Office layouts will increasingly prioritize flexibility and collaboration. The traditional cubicle model will be replaced by open-plan spaces with modular furniture, allowing companies to adjust layouts as needed.
Collaborative areas, lounges, and meeting rooms will become the focus of office design, encouraging communication and creativity in teams. Demand for flexible layouts is expected to grow by 15-20% by 2025 as businesses recognize the value of creating a dynamic, team-oriented environment.
Resi-mercial spaces: A new era for corporate workplaces
The rise of remote work has significantly reshaped the demand for office space as multinational companies and large corporates embrace “racy-martial” designs. These workspaces blend the comfort and aesthetics of residential spaces with the functionality of a commercial environment.
Instead of maintaining traditional rigid office layouts, many companies are adapting to more agile, flexible office spaces that promote collaboration and creativity and provide a more inviting, comfortable environment.
By 2025, Tier II cities are witnessing an increase in demand for such places driven by affordable property rates and urbanization. The goal is to make office spaces more vibrant where employees can create a positive, engaging environment in which to work well.
The future of commercial real estate
As we look to the future of commercial real estate, the sector is poised for transformation driven by innovation, flexibility, and sustainability. The integration of hybrid work models, smart technologies, and resi-mercial designs will redefine the workplace, making office spaces more dynamic and responsive to the evolving needs of businesses and employees.
With a focus on well-being, sustainability, and seamless collaboration, the next generation of office spaces will not only meet the demands of the modern workforce but also contribute to a more sustainable and efficient built environment.
As cities expand and corporate priorities change, the commercial real estate market will continue to evolve, with Tier II cities emerging as major hubs for growth.
Sanjay Chatrath is the Co-Founder and Managing Partner of Incuspaze.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)