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New Delhi: The Indian flexible workspace sector has crossed the 100 million sq ft mark and is on track to achieve a $9–10 billion valuation by 2028, entering a phase of profitability-led growth as operators pivot from aggressive expansion to margin discipline amid a surge in enterprise demand, according to myHQ by Anarock.Global Capability Centres (GCCs) accounting for close to 40% of new seats in recent quarters. At the same time, average deal sizes have more than doubled, from 25 to 53 seats between 2023 and 2025, showcasing growing confidence in flex as a core real estate strategy.The BFSI sector has also significantly expanded its coworking footprint, underscoring growing trust in flex operators' compliance and infrastructure capabilities.“Flex operators are no longer just competing with each other; they are competing with conventional commercial real estate, and winning on flexibility, speed, and capital efficiency. Multiple listed operators turned profitable in the same quarter for the first time, with margins expanding across the board,” said Utkarsh Kawatra, Co-Founder & CEO, myHQ by Anarock.With more listings on the horizon and consolidation accelerating in Tier-2 markets, the industry is entering its most consequential phase.On the supply side, operators continued to scale through large-format campus developments and expansion into Tier-1.5 and Tier-2 markets. This includes significant desk additions across key cities such as Mumbai, Bangalore and Hyderabad.The quarter also saw DevX complete one of the sector’s largest single tower acquisition with a 27-storey tower in Ahmedabad, signalling growing confidence in large-scale flex infrastructure.Beyond traditional workspace offerings, operators are diversifying revenue streams. The industry has also introduced new on-demand offerings, including Executive Day Passes and Private Cabins, reflecting growing demand for flexible, short-term workspace solutions.The report highlights emerging trends such as IPO multiple compression, evolving AI-led demand patterns, and potential risks to GCC expansion pipelines due to global geopolitical developments. However, enterprise demand pipelines have remained intact, and the sector has demonstrated resilience through prior cycles of global uncertainty.Additional operator-level insights from the report indicate strong desk growth at IndiQube, increasing average centre sizes at Smartworks, rising revenue per member at WeWork, and an occupancy gap at Awfis.Financial performance across operators reflects improving fundamentals, including WeWork’s path to profitability, Smartworks’ P&L turnaround, IndiQube’s revenue growth, and Awfis’ leadership in value-added services.WeWork India , SmartWorks both posted profit in the last quarter. Three of four listed operators expanded EBITDA margins year-on-year, with Smartworks recording the sector’s widest expansion at 490 basis points.