Pune: Banking, financial services and insurance (BFSI) companies are rapidly gaining traction in the flexible office space market, emerging as the second-largest occupier in 2026 behind the information technology (IT) sector.The segment’s share of total flexible office space demand has more than doubled in three years, signalling a gradual shift in the composition of office space demand. According to a report by flexible workspace platform myHQ, BFSI’s share in the flexible office space market increased from 4.5% in 2023 to 12.2% in 2026. It was the ninth-largest contributor among 10 industries in 2023 but climbed to the second position this year, recording the biggest increase in market share among all sectors.Consulting has also emerged as a significant demand driver, accounting for 11.5% of the flexible office space market. The growing contribution of BFSI and consulting points towards a broader diversification of occupiers, beyond the traditionally dominant IT sector.IT and IT-enabled services continue to command the largest share of the market at 43.9% in 2026. The myHQ report attributed the emerging trend partly to a slowdown in IT/ITeS hiring, which is expected to translate into fewer new technology teams and slower growth in office space requirements from the sector.“Flexible workspace market is witnessing two shifts at once. The demand is spreading across more industries and the size of office requirements is changing. While technology continues to account for the largest share of demand, the market is increasingly being shaped by a wider mix of occupiers and differing workspace needs,” Utkarsh Kawatra, the CEO of myHQ, said.A Knight Frank India report said manufacturing firms, represented by engineering, R&D and corporate, are also looking at flexible offices to support administrative functions. “India’s flexible workspace sector has moved well beyond its early positioning as a startup-led phenomenon to become a core component of enterprise real estate strategy. Looking ahead, we expect flexible spaces to play an increasingly critical role in enabling global capability centre expansion, supporting distributed workforce strategies and driving portfolio optimisation for large corporates,” said Shishir Baijal, CMD, Knight Frank India.A report by real estate consultancy Vestian highlighted the gradual diversification of India’s office market, noting that the demand from the BFSI sector for flexible office spaces was increasingly gaining ground and challenging the dominance of IT companies.
