Bengaluru: Flexible workspace providers are seeing higher demand for office space from artificial intelligence companies and Al-first businesses, with a bulk of the leasing happening in Bengaluru, Pune, and Hyderabad.

Flex office operators such as WeWork India, IndiQube, Table Space, Inouspaze and others have signed on Al firms as tenants for 50-700 seats in their centres.

“Leading shared workspace firms WeWork India and IndiQube have signed multiple deals with Al startups in Bengaluru and other cities in the last year or so,” said a person familiar with the companies’ plans.

WeWork India, for instance, has signed lease transactions with companies such as Asper.al Technologies Pvt Ltd, an Al platform for consumer goods, and Eightfold Al India Pvt Ltd, a talent intelligence platform.

Spokespersons of WeWork India and IndiQube, both in IPO mode. declined to comment.

“Al is one of the most dynamic and fast-growing sectors today, and at Table Space we are seeing increasing demand from Al-first companies. As these businesses scale and adapt to market shifts, flexible workspaces offer the ideal solution—allowing expansion, quick pivots, and operational efficiency,” said Karan Chopra, co-CEO and chairman, Table Space.

“Al is one of the most dynamic and fast-growing sectors today, and at Table Space we are seeing increasing demand from Al-first companies. As these businesses scale and adapt to market shifts, flexible workspaces offer the ideal solution—allowing expansion, quick pivots, and operational efficiency,” said Karan Chopra, co-CEO and chairman, Table Space.

We are particularly seeing Pune and Hyderabad emerge as hotspots for Al and tech-focused clients who require office space,” he said.

A 2024 report by Nasscom and Boston Consulting Group said the AI market in India is projected to grow at 25-35% compounded average growth rate till 2027, supported by a large Al talent base and high investments. The Al market size, at $7-9 billion in 2023, is estimated to reach S17-22 billion in 2027.

Manas Mehrotra, founder, 315Work Avenue, said Al firms prefer mid-tolarge spaces in prime locations, offering flexibility to grow and access talent. “…This expansion is significantly driven by the rise in Al and tech research facilities. In addition to Al, deep-tech startups are now leveraging flexible workspaces to facilitate quick scaling and changing infrastructure demands,” he said.

Specialised workspaces

In the recent past, ivlehrotra said several companies specializing in big data analytics, insights-led customer engagement platforms and Al solutions firms have chosen 315Work Avenue’s customized workspaces.

Consultants said managed and flexible office spaces, which accounted for 20% of total office leasing in 2024, work well for Al-led businesses that have been expanding and raising fresh funding.

Rahul Mora, head-office leasing and retail services, senior managing director (Karnataka, Kerala), India, JLL, a property advisory, said emerging sectors, particularly Al and ML (machine learning), are popular and driving demand for office space. Flexible workspaces have become increasingly attractive in this landscape, offering numerous advantages, he said.

“Such workspaces require minimal upfront investment, can be acquired swiftly, and provide tailored solutions to meet diverse business needs.” Arora added.

Hanto Workspace has partnered with Al-driven firms such as Future AGI, Composio, and Skyfall Al for long-term workspace solutions. While the average space allocation per employee in conventional startups is 40-50 sq. Al startups require 90-100 sq. ft per person

This is primarily due to their need for high-powered computing infrastructure and leaner workfo rce. Preferred locations include tech hubs and business districts in Bengaluru, such as Koramangala. I-1 5R Layout, and WhitefieIV said Rash it Verma, founder of Hanto Workspace.

Five cities in demand

While Bengaluru remains the primary hub due to its strong tech ecosystem, flex office operator Incuspaze said it is also seeing interest in Hyderabad, Pune, Gurugram, and Chennai, where Al startups and research and development centres are expanding.

“The demand is being driven by a mix of early-stage Al startups, research-driven firms, and larger tech companies setting up AI divisions,” said Sanjay Chatrath, co-founder and managing partner, Incuspaze.

Al companies typically take up spaces ranging from 50 to 500 seats, with some larger firms requiring entire dedicated floors or customized office setups.