The Instant Group, the largest global marketplace for flexible workspace, today reveals the APAC cities that experienced the biggest demand growth for flexible workspace in 2025 compared to 2024 as companies of all sizes adopt more flexible ways of working.
Across the globe, flexible workspace adoption accelerated in 2025 as companies sought greater agility, reduced operational risk, and workplaces designed to support hybrid ways of working, with collaboration and social connection at the heart of office use. Flexible workspaces met this shift, offering environments purpose-built for focus, teamwork, connection, and movement.
Large enterprises, corporates, and small businesses have reevaluated their real estate portfolios, turning to flexible, cost-efficient solutions to support hybrid teams. One of the biggest trends of the year in APAC, and around the world, has been the rise of suburban work hubs closer to where employees live – contributing to growth in many APAC cities.
Here are the ten cities that emerged as APAC’s highest-growth flexible workspace markets in 2025:
- Manila, Philippines (+51%) – Manila topped the list with exceptional year-on-year growth, driven by a surge in multinational and BPO demand. The city’s strong talent pool and expanding commercial districts accelerated the shift to flexible workspace.
- Sydney, Australia (+46%) – Sydney’s demand continued to climb as hybrid work became entrenched and companies decentralized into suburban and fringe business hubs across the city. Instant’s data shows that demand for Sydney suburbs grew by 42% year-on-year (H1 2025 vs H1 2024).
- Melbourne, Australia (+34%) – Melbourne saw steady flex uptake as businesses balanced cost pressures with the need for high-quality space, making flexible models an attractive alternative to long-term CBD leases. Suburban hubs also became increasingly favorable, with enquiries up 104% year-on-year (H1 2025 vs H1 2024).
- Kuala Lumpur, Malaysia (+25%) – The city’s competitive operational and real estate costs made it an attractive alternative for regional and global clients, driving sustained demand for high-quality, well-located flexible workspace.
- Tokyo, Japan (+23%) – Tokyo’s dense urban footprint and long commute times pushed both corporates and employees toward satellite and near-home workspaces, contributing to a robust 23% year-on-year rise in flex demand.
- Shenzhen, China (+19%) – As one of China’s leading innovation hubs, Shenzhen saw increased flex demand from fast-scaling tech firms seeking agile and scalable workplace models.
- Hyderabad, India (+9%) – Hyderabad’s thriving tech ecosystem and competitive real estate market pushed companies toward flexible space to enable rapid scaling. The city’s lower cost of living and more affordable real estate made it an attractive alternative to more established Indian markets.
- Auckland, New Zealand (+6%) – Auckland gained momentum as corporates adopted hybrid models, using flexible workspace to decentralize operations, reduce commute fatigue, strengthen access to talent, and improve retention.
- Singapore (+5%) – Singapore’s growth was fueled by strong enterprise demand as occupiers balanced the need for premium workspace with greater agility. In one of the region’s most competitive commercial markets, flexible models became a strategic way for businesses to secure quality space without long-term commitments.
- Taipei, Taiwan (+3%) – Taipei’s steady flex demand was driven by its strong SME and tech ecosystem, with businesses using flexible workspace to stay agile, support project-based teams, and expand across the wider metro area without long-term commitments.
“From Manila to Melbourne, organisations continued to prioritise agility, efficiency and smarter ways of working. Rising flexible workspace demand across APAC’s fastest-growing cities shows how quickly the region shifted toward more dynamic workplace models – and we expect this momentum to accelerate well into 2026,” said Paul Marshall, The Instant Group’s Executive Director, Managed Asia Pacific.
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