65% of Indian Companies Are Moving to Flexible Workspaces by 2027 Here's What It Means for Mangaluru
A major new report from CBRE Group India has confirmed what many professionals have quietly known for a while: the traditional office lease is fading, and flexible workspaces are no longer a startup trend they are becoming the mainstream way Indian businesses work.
Here's what the data says, why it matters, and what it means specifically for professionals and businesses in Mangaluru.
What the Report Says
A report from CBRE Group India Research found that 65% of office occupiers plan to integrate flexible workspace into their portfolios by 2027. Today, 55% already use flex space within their existing setups.
The growth behind these numbers is striking. Total flexible workspace stock has tripled between 2020 and 2025, reaching roughly 110 to 114 million square feet with about half of that supply added since 2021. Flex space now makes up 10 to 12% of India's total office inventory.
And this is no longer a startup story. Demand is no longer limited to startups. Large corporations, global capability centers, and mid-sized businesses are driving adoption, using flexible space as part of long-term portfolio planning rather than short-term overflow.
The Tier-2 City Shift And Why Mangaluru Is in the Middle of It
The most important part of this story isn't what's happening in Mumbai or Bengaluru. It's what's happening everywhere else.
Demand in non-metro markets is growing nearly twice as fast as in Tier-1 cities.
Startups are no longer forced to pay Bengaluru or Mumbai rents to access high-quality infrastructure. The proliferation of Grade-A coworking spaces in emerging cities has allowed companies to reduce operational costs by 30–40% while tapping into regional talent pools that are equally skilled but more cost-effective and stable.
Mangaluru fits this profile precisely. The city has a strong graduate pipeline from NITK Surathkal and Manipal University, a growing IT and services sector, and living costs that are a fraction of Bengaluru making it an increasingly attractive base for businesses that want quality without metro-city overhead.
Why Companies Are Making the Switch
The reasons go beyond cost. According to the data, the top drivers for businesses moving to flexible workspaces in 2026 are:
Agility over commitment — Businesses want to scale up or down without being locked into 5-year leases. A company that grows from 8 to 25 people in a year needs a workspace that can grow with it not one that punishes it for outgrowing a fixed space.
Hybrid work is now standard — Employees want workspace options that support occasional office use, collaboration days, and a work-from-home balance with shorter commutes, healthier workplaces, and flexible schedules. Fixed offices serve hybrid teams poorly. Flexible workspaces are built for exactly this rhythm.
The ESG factor — ESG criteria are now a primary driver for office selection in corporate India. In 2026, a sustainable coworking space is not just judged by its coffee or its internet speed, but by its carbon footprint, water management practices, and social impact initiatives.
Lower capital expenditure — Setting up a traditional office requires furniture, fit-outs, deposits, and IT infrastructure. A coworking space requires none of it you walk in and work from day one.
What This Means If You're in Mangaluru Right Now
Whether you're a freelancer, a small business owner, or a team lead managing a distributed group this national shift creates a direct opportunity for you.
If you're a freelancer or consultant: The professional baseline is rising. Clients increasingly expect polished, professional interactions video calls from a proper background, meetings in a real room, invoices from a business address. A coworking membership closes that gap at a cost that makes sense.
If you're a startup: The data backs what you might already feel long leases are a liability in the early stages. Flexible workspace lets you protect capital while accessing the infrastructure and credibility of a proper office.
If you're a business expanding into coastal Karnataka: Mangaluru is an increasingly smart entry point. A managed office or virtual office here gives you a local presence, a registered address, and access to regional talent without committing to a permanent setup before you've tested the market.
The Workbench Perspective
At Workbench Workspace in Balmatta, Mangaluru, we've seen this shift first-hand. Enquiries from small businesses, remote teams, and enterprise clients have grown steadily not because coworking is fashionable, but because it genuinely works better for the way people work now.
