The Indian flexible workspace industry is looking to the Government of India for supportive policy measures in the Union Budget 2026 to sustain its rapid growth and further strengthen India’s position as a global business hub.
The flexible office market in India, valued at USD 5.99 billion in 2025, is projected to reach USD 11.39 billion by 2030, growing at a compound annual growth rate (CAGR) of 13.72 per cent. Industry estimates suggest that the total stock of flexible office space in the country is likely to cross 100 million square feet by 2026–27, driven by increasing demand from startups, large enterprises and global firms adopting asset-light and agile operating models.
To maintain this growth trajectory, industry stakeholders are seeking GST rationalisation, regulatory clarity and enhanced ease of doing business as key priorities in the upcoming Union Budget.
“India’s flexible workspace sector is emerging as a critical enabler for global businesses, particularly Global Capability Centers and digitally driven enterprises,” said Ms Archana Naidu, Board Member and Head of Business at iKeva. “In Budget 2026, the industry expects clear policy support through tax reforms, streamlined regulations and incentives for expansion into emerging cities.”
She added that GST rationalisation on flexible workspace services, clarity on satellite communication spectrum to support digital integration, and incentives for expansion into Tier 2 and Tier 3 cities would be crucial for ensuring sustainable growth and global competitiveness.
Key policy expectations from the flexible workspace industry include:
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Tax and GST reforms:
Rationalising GST by recognising flexible workspaces as essential business infrastructure rather than hospitality services, along with tax incentives to promote green buildings and adoption of advanced technologies such as IoT and AI. -
Regulatory clarity and ease of doing business:
Clear guidelines on satellite communication spectrum to enable high-speed connectivity for remote and hybrid operations, and faster approvals for setting up new centres, especially in emerging cities. -
Support for growth drivers:
Policy backing for Global Capability Centers using flex spaces as plug-and-play entry points into India, along with incentives for advanced digital infrastructure including AI, AR and VR-enabled workplaces. -
Market expansion and sustainability:
Incentives for expansion into Tier 2 and Tier 3 cities to unlock new demand and employment opportunities, and policy support for ESG-aligned sustainable practices and green certifications.
Industry leaders believe that such measures in Union Budget 2026 will enhance India’s attractiveness for global businesses, accelerate digital transformation, and promote sustainable, asset-light growth across the flexible workspace ecosystem.